Correlation Between Crinetics Pharmaceuticals and MAIA Biotechnology
Can any of the company-specific risk be diversified away by investing in both Crinetics Pharmaceuticals and MAIA Biotechnology 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 Crinetics Pharmaceuticals and MAIA Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crinetics Pharmaceuticals and MAIA Biotechnology, you can compare the effects of market volatilities on Crinetics Pharmaceuticals and MAIA Biotechnology 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 Crinetics Pharmaceuticals with a short position of MAIA Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crinetics Pharmaceuticals and MAIA Biotechnology.
Diversification Opportunities for Crinetics Pharmaceuticals and MAIA Biotechnology
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Crinetics and MAIA is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Crinetics Pharmaceuticals and MAIA Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAIA Biotechnology and Crinetics Pharmaceuticals 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 Crinetics Pharmaceuticals are associated (or correlated) with MAIA Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAIA Biotechnology has no effect on the direction of Crinetics Pharmaceuticals i.e., Crinetics Pharmaceuticals and MAIA Biotechnology go up and down completely randomly.
Pair Corralation between Crinetics Pharmaceuticals and MAIA Biotechnology
Given the investment horizon of 90 days Crinetics Pharmaceuticals is expected to generate 0.71 times more return on investment than MAIA Biotechnology. However, Crinetics Pharmaceuticals is 1.42 times less risky than MAIA Biotechnology. It trades about 0.05 of its potential returns per unit of risk. MAIA Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 1,997 in Crinetics Pharmaceuticals on November 5, 2024 and sell it today you would earn a total of 2,033 from holding Crinetics Pharmaceuticals or generate 101.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crinetics Pharmaceuticals vs. MAIA Biotechnology
Performance |
| Timeline |
| Crinetics Pharmaceuticals |
| MAIA Biotechnology |
Crinetics Pharmaceuticals and MAIA Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crinetics Pharmaceuticals and MAIA Biotechnology
The main advantage of trading using opposite Crinetics Pharmaceuticals and MAIA Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crinetics Pharmaceuticals position performs unexpectedly, MAIA Biotechnology 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 MAIA Biotechnology will offset losses from the drop in MAIA Biotechnology's long position.| Crinetics Pharmaceuticals vs. Viridian Therapeutics | Crinetics Pharmaceuticals vs. Cytokinetics | Crinetics Pharmaceuticals vs. Structure Therapeutics American | Crinetics Pharmaceuticals vs. Passage Bio |
| MAIA Biotechnology vs. Lineage Cell Therapeutics | MAIA Biotechnology vs. Armata Pharmaceuticals | MAIA Biotechnology vs. Portage Biotech | MAIA Biotechnology vs. Larimar 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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