Correlation Between Cogent Biosciences and Glory Star
Can any of the company-specific risk be diversified away by investing in both Cogent Biosciences and Glory Star 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 Cogent Biosciences and Glory Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogent Biosciences and Glory Star New, you can compare the effects of market volatilities on Cogent Biosciences and Glory Star 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 Cogent Biosciences with a short position of Glory Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Biosciences and Glory Star.
Diversification Opportunities for Cogent Biosciences and Glory Star
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cogent and Glory is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Biosciences and Glory Star New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glory Star New and Cogent Biosciences 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 Cogent Biosciences are associated (or correlated) with Glory Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glory Star New has no effect on the direction of Cogent Biosciences i.e., Cogent Biosciences and Glory Star go up and down completely randomly.
Pair Corralation between Cogent Biosciences and Glory Star
If you would invest 50.00 in Glory Star New on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Glory Star New or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Cogent Biosciences vs. Glory Star New
Performance |
| Timeline |
| Cogent Biosciences |
| Glory Star New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cogent Biosciences and Glory Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Biosciences and Glory Star
The main advantage of trading using opposite Cogent Biosciences and Glory Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Biosciences position performs unexpectedly, Glory Star 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 Glory Star will offset losses from the drop in Glory Star's long position.| Cogent Biosciences vs. Larimar Therapeutics | Cogent Biosciences vs. Kura Oncology | Cogent Biosciences vs. Kiniksa Pharmaceuticals | Cogent Biosciences vs. Ideaya Biosciences |
| Glory Star vs. Global Payout | Glory Star vs. Clubhouse Media Group | Glory Star vs. ZW Data Action | Glory Star vs. MGO Global Common |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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