Correlation Between Cue Biopharma and Affimed NV
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Affimed NV 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 Cue Biopharma and Affimed NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and Affimed NV, you can compare the effects of market volatilities on Cue Biopharma and Affimed NV 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 Cue Biopharma with a short position of Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Affimed NV.
Diversification Opportunities for Cue Biopharma and Affimed NV
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cue and Affimed is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed NV and Cue Biopharma 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 Cue Biopharma are associated (or correlated) with Affimed NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affimed NV has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Affimed NV go up and down completely randomly.
Pair Corralation between Cue Biopharma and Affimed NV
Considering the 90-day investment horizon Cue Biopharma is expected to generate 1.35 times more return on investment than Affimed NV. However, Cue Biopharma is 1.35 times more volatile than Affimed NV. It trades about 0.0 of its potential returns per unit of risk. Affimed NV is currently generating about -0.04 per unit of risk. If you would invest 208.00 in Cue Biopharma on August 27, 2024 and sell it today you would lose (106.00) from holding Cue Biopharma or give up 50.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cue Biopharma vs. Affimed NV
Performance |
| Timeline |
| Cue Biopharma |
| Affimed NV |
Cue Biopharma and Affimed NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Affimed NV
The main advantage of trading using opposite Cue Biopharma and Affimed NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Affimed NV 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 Affimed NV will offset losses from the drop in Affimed NV's long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Affimed NV vs. Eliem Therapeutics | Affimed NV vs. HCW Biologics | Affimed NV vs. Scpharmaceuticals | Affimed NV vs. Milestone Pharmaceuticals |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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