Correlation Between Cue Biopharma and AN2 Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and AN2 Therapeutics 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 AN2 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and AN2 Therapeutics, you can compare the effects of market volatilities on Cue Biopharma and AN2 Therapeutics 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 AN2 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and AN2 Therapeutics.
Diversification Opportunities for Cue Biopharma and AN2 Therapeutics
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cue and AN2 is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and AN2 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AN2 Therapeutics 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 AN2 Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AN2 Therapeutics has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and AN2 Therapeutics go up and down completely randomly.
Pair Corralation between Cue Biopharma and AN2 Therapeutics
Considering the 90-day investment horizon Cue Biopharma is expected to under-perform the AN2 Therapeutics. In addition to that, Cue Biopharma is 1.5 times more volatile than AN2 Therapeutics. It trades about -0.18 of its total potential returns per unit of risk. AN2 Therapeutics is currently generating about 0.21 per unit of volatility. If you would invest 107.00 in AN2 Therapeutics on August 25, 2024 and sell it today you would earn a total of 27.00 from holding AN2 Therapeutics or generate 25.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cue Biopharma vs. AN2 Therapeutics
Performance |
| Timeline |
| Cue Biopharma |
| AN2 Therapeutics |
Cue Biopharma and AN2 Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and AN2 Therapeutics
The main advantage of trading using opposite Cue Biopharma and AN2 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, AN2 Therapeutics 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 AN2 Therapeutics will offset losses from the drop in AN2 Therapeutics' long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| AN2 Therapeutics vs. Aerovate Therapeutics | AN2 Therapeutics vs. Adagene | AN2 Therapeutics vs. Acrivon Therapeutics, Common | AN2 Therapeutics vs. Rezolute |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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