Correlation Between Cue Biopharma and Avenue Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Avenue 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 Avenue 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 Avenue Therapeutics, you can compare the effects of market volatilities on Cue Biopharma and Avenue 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 Avenue Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Avenue Therapeutics.
Diversification Opportunities for Cue Biopharma and Avenue Therapeutics
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cue and Avenue is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Avenue Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avenue 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 Avenue Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avenue Therapeutics has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Avenue Therapeutics go up and down completely randomly.
Pair Corralation between Cue Biopharma and Avenue Therapeutics
Considering the 90-day investment horizon Cue Biopharma is expected to generate 2.12 times more return on investment than Avenue Therapeutics. However, Cue Biopharma is 2.12 times more volatile than Avenue Therapeutics. It trades about 0.02 of its potential returns per unit of risk. Avenue Therapeutics is currently generating about -0.07 per unit of risk. If you would invest 156.00 in Cue Biopharma on September 2, 2024 and sell it today you would lose (34.00) from holding Cue Biopharma or give up 21.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cue Biopharma vs. Avenue Therapeutics
Performance |
| Timeline |
| Cue Biopharma |
| Avenue Therapeutics |
Cue Biopharma and Avenue Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Avenue Therapeutics
The main advantage of trading using opposite Cue Biopharma and Avenue Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Avenue 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 Avenue Therapeutics will offset losses from the drop in Avenue Therapeutics' long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Avenue Therapeutics vs. Hoth Therapeutics | Avenue Therapeutics vs. Revelation Biosciences | Avenue Therapeutics vs. Neurobo Pharmaceuticals | Avenue Therapeutics vs. Virax Biolabs Group |
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.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |