Correlation Between Cue Biopharma and Better Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Better 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 Better 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 Better Therapeutics, you can compare the effects of market volatilities on Cue Biopharma and Better 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 Better Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Better Therapeutics.
Diversification Opportunities for Cue Biopharma and Better Therapeutics
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cue and Better is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Better Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Better 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 Better Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Better Therapeutics has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Better Therapeutics go up and down completely randomly.
Pair Corralation between Cue Biopharma and Better Therapeutics
Considering the 90-day investment horizon Cue Biopharma is expected to generate 0.96 times more return on investment than Better Therapeutics. However, Cue Biopharma is 1.04 times less risky than Better Therapeutics. It trades about 0.0 of its potential returns per unit of risk. Better Therapeutics is currently generating about -0.03 per unit of risk. If you would invest 279.00 in Cue Biopharma on September 14, 2024 and sell it today you would lose (179.88) from holding Cue Biopharma or give up 64.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 29.09% |
| Values | Daily Returns |
Cue Biopharma vs. Better Therapeutics
Performance |
| Timeline |
| Cue Biopharma |
| Better Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cue Biopharma and Better Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Better Therapeutics
The main advantage of trading using opposite Cue Biopharma and Better Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Better 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 Better Therapeutics will offset losses from the drop in Better Therapeutics' long position.| Cue Biopharma vs. Puma Biotechnology | Cue Biopharma vs. Iovance Biotherapeutics | Cue Biopharma vs. Day One Biopharmaceuticals | Cue Biopharma vs. Inozyme Pharma |
| Better Therapeutics vs. ABVC Biopharma | Better Therapeutics vs. Indaptus Therapeutics | Better Therapeutics vs. Pasithea Therapeutics Corp | Better Therapeutics vs. Forte Biosciences |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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