Correlation Between Cingulate and Finch Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cingulate and Finch Therapeutics 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 Finch Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cingulate and Finch Therapeutics Group, you can compare the effects of market volatilities on Cingulate and Finch Therapeutics 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 Finch Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cingulate and Finch Therapeutics.
Diversification Opportunities for Cingulate and Finch Therapeutics
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cingulate and Finch is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate and Finch Therapeutics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finch Therapeutics 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 Finch Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finch Therapeutics has no effect on the direction of Cingulate i.e., Cingulate and Finch Therapeutics go up and down completely randomly.
Pair Corralation between Cingulate and Finch Therapeutics
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 | 0.44% |
| Values | Daily Returns |
Cingulate vs. Finch Therapeutics Group
Performance |
| Timeline |
| Cingulate |
| Finch Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cingulate and Finch Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cingulate and Finch Therapeutics
The main advantage of trading using opposite Cingulate and Finch Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate position performs unexpectedly, Finch Therapeutics 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 Finch Therapeutics will offset losses from the drop in Finch Therapeutics' long position.| Cingulate vs. SAB Biotherapeutics | Cingulate vs. Senti Biosciences | Cingulate vs. Aerovate Therapeutics | Cingulate vs. Adagene |
| Finch Therapeutics vs. Werewolf Therapeutics | Finch Therapeutics vs. Edgewise Therapeutics | Finch Therapeutics vs. Celcuity LLC | Finch Therapeutics vs. C4 Therapeutics |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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