Correlation Between Cingulate and Coherus BioSciences
Can any of the company-specific risk be diversified away by investing in both Cingulate and Coherus BioSciences at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cingulate and Coherus BioSciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cingulate and Coherus BioSciences, you can compare the effects of market volatilities on Cingulate and Coherus BioSciences and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cingulate with a short position of Coherus BioSciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cingulate and Coherus BioSciences.
Diversification Opportunities for Cingulate and Coherus BioSciences
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cingulate and Coherus is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate and Coherus BioSciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coherus BioSciences and Cingulate is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cingulate are associated (or correlated) with Coherus BioSciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coherus BioSciences has no effect on the direction of Cingulate i.e., Cingulate and Coherus BioSciences go up and down completely randomly.
Pair Corralation between Cingulate and Coherus BioSciences
Given the investment horizon of 90 days Cingulate is expected to generate 4.12 times more return on investment than Coherus BioSciences. However, Cingulate is 4.12 times more volatile than Coherus BioSciences. It trades about 0.01 of its potential returns per unit of risk. Coherus BioSciences is currently generating about -0.06 per unit of risk. If you would invest 9,180 in Cingulate on August 25, 2024 and sell it today you would lose (8,708) from holding Cingulate or give up 94.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cingulate vs. Coherus BioSciences
Performance |
| Timeline |
| Cingulate |
| Coherus BioSciences |
Cingulate and Coherus BioSciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cingulate and Coherus BioSciences
The main advantage of trading using opposite Cingulate and Coherus BioSciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate position performs unexpectedly, Coherus BioSciences can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Coherus BioSciences will offset losses from the drop in Coherus BioSciences' long position.| Cingulate vs. SAB Biotherapeutics | Cingulate vs. Senti Biosciences | Cingulate vs. Aerovate Therapeutics | Cingulate vs. Adagene |
| Coherus BioSciences vs. Assembly Biosciences | Coherus BioSciences vs. Spero Therapeutics | Coherus BioSciences vs. Achilles Therapeutics PLC | Coherus BioSciences vs. Instil Bio |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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