Correlation Between Cingulate and Gracell Biotechnologies
Can any of the company-specific risk be diversified away by investing in both Cingulate and Gracell Biotechnologies 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 Gracell Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cingulate and Gracell Biotechnologies, you can compare the effects of market volatilities on Cingulate and Gracell Biotechnologies 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 Gracell Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cingulate and Gracell Biotechnologies.
Diversification Opportunities for Cingulate and Gracell Biotechnologies
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cingulate and Gracell is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate and Gracell Biotechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gracell Biotechnologies 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 Gracell Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gracell Biotechnologies has no effect on the direction of Cingulate i.e., Cingulate and Gracell Biotechnologies go up and down completely randomly.
Pair Corralation between Cingulate and Gracell Biotechnologies
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 Against |
| Strength | Weak |
| Accuracy | 0.44% |
| Values | Daily Returns |
Cingulate vs. Gracell Biotechnologies
Performance |
| Timeline |
| Cingulate |
| Gracell Biotechnologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cingulate and Gracell Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cingulate and Gracell Biotechnologies
The main advantage of trading using opposite Cingulate and Gracell Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate position performs unexpectedly, Gracell Biotechnologies 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 Gracell Biotechnologies will offset losses from the drop in Gracell Biotechnologies' long position.| Cingulate vs. SAB Biotherapeutics | Cingulate vs. Senti Biosciences | Cingulate vs. Aerovate Therapeutics | Cingulate vs. Adagene |
| Gracell Biotechnologies vs. Monte Rosa Therapeutics | Gracell Biotechnologies vs. Design Therapeutics | Gracell Biotechnologies vs. Erasca Inc | Gracell Biotechnologies vs. NextCure |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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