Correlation Between Cardiff Oncology and Mustang Bio
Can any of the company-specific risk be diversified away by investing in both Cardiff Oncology and Mustang Bio 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 Cardiff Oncology and Mustang Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardiff Oncology and Mustang Bio, you can compare the effects of market volatilities on Cardiff Oncology and Mustang Bio 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 Cardiff Oncology with a short position of Mustang Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardiff Oncology and Mustang Bio.
Diversification Opportunities for Cardiff Oncology and Mustang Bio
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cardiff and Mustang is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cardiff Oncology and Mustang Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mustang Bio and Cardiff Oncology 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 Cardiff Oncology are associated (or correlated) with Mustang Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mustang Bio has no effect on the direction of Cardiff Oncology i.e., Cardiff Oncology and Mustang Bio go up and down completely randomly.
Pair Corralation between Cardiff Oncology and Mustang Bio
Given the investment horizon of 90 days Cardiff Oncology is expected to generate 0.28 times more return on investment than Mustang Bio. However, Cardiff Oncology is 3.62 times less risky than Mustang Bio. It trades about 0.05 of its potential returns per unit of risk. Mustang Bio is currently generating about 0.01 per unit of risk. If you would invest 134.00 in Cardiff Oncology on September 2, 2024 and sell it today you would earn a total of 127.00 from holding Cardiff Oncology or generate 94.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardiff Oncology vs. Mustang Bio
Performance |
| Timeline |
| Cardiff Oncology |
| Mustang Bio |
Cardiff Oncology and Mustang Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardiff Oncology and Mustang Bio
The main advantage of trading using opposite Cardiff Oncology and Mustang Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardiff Oncology position performs unexpectedly, Mustang Bio 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 Mustang Bio will offset losses from the drop in Mustang Bio's long position.| Cardiff Oncology vs. Reviva Pharmaceuticals Holdings | Cardiff Oncology vs. PDS Biotechnology Corp | Cardiff Oncology vs. Reviva Pharmaceuticals Holdings | Cardiff Oncology vs. Eyenovia |
| Mustang Bio vs. Tff Pharmaceuticals | Mustang Bio vs. Eliem Therapeutics | Mustang Bio vs. Inhibrx | Mustang Bio vs. Enliven 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |