Correlation Between Caribou Biosciences and Atara Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Caribou Biosciences and Atara Biotherapeutics 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 Caribou Biosciences and Atara Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caribou Biosciences and Atara Biotherapeutics, you can compare the effects of market volatilities on Caribou Biosciences and Atara Biotherapeutics 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 Caribou Biosciences with a short position of Atara Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caribou Biosciences and Atara Biotherapeutics.
Diversification Opportunities for Caribou Biosciences and Atara Biotherapeutics
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Caribou and Atara is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Caribou Biosciences and Atara Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atara Biotherapeutics and Caribou 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 Caribou Biosciences are associated (or correlated) with Atara Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atara Biotherapeutics has no effect on the direction of Caribou Biosciences i.e., Caribou Biosciences and Atara Biotherapeutics go up and down completely randomly.
Pair Corralation between Caribou Biosciences and Atara Biotherapeutics
Given the investment horizon of 90 days Caribou Biosciences is expected to under-perform the Atara Biotherapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Caribou Biosciences is 1.51 times less risky than Atara Biotherapeutics. The stock trades about -0.03 of its potential returns per unit of risk. The Atara Biotherapeutics is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 11,100 in Atara Biotherapeutics on November 2, 2024 and sell it today you would lose (10,251) from holding Atara Biotherapeutics or give up 92.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caribou Biosciences vs. Atara Biotherapeutics
Performance |
| Timeline |
| Caribou Biosciences |
| Atara Biotherapeutics |
Caribou Biosciences and Atara Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caribou Biosciences and Atara Biotherapeutics
The main advantage of trading using opposite Caribou Biosciences and Atara Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caribou Biosciences position performs unexpectedly, Atara Biotherapeutics 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 Atara Biotherapeutics will offset losses from the drop in Atara Biotherapeutics' long position.| Caribou Biosciences vs. Intellia Therapeutics | Caribou Biosciences vs. Editas Medicine | Caribou Biosciences vs. Crispr Therapeutics AG | Caribou Biosciences vs. Verve Therapeutics |
| Atara Biotherapeutics vs. Fate Therapeutics | Atara Biotherapeutics vs. Sana Biotechnology | Atara Biotherapeutics vs. Caribou Biosciences | Atara Biotherapeutics vs. Arcus Biosciences |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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