Correlation Between Cue Biopharma and Coherus BioSciences
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Coherus BioSciences 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 Coherus BioSciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and Coherus BioSciences, you can compare the effects of market volatilities on Cue Biopharma and Coherus BioSciences 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 Coherus BioSciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Coherus BioSciences.
Diversification Opportunities for Cue Biopharma and Coherus BioSciences
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cue and Coherus is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Coherus BioSciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coherus BioSciences 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 Coherus BioSciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coherus BioSciences has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Coherus BioSciences go up and down completely randomly.
Pair Corralation between Cue Biopharma and Coherus BioSciences
Considering the 90-day investment horizon Cue Biopharma is expected to generate 1.23 times more return on investment than Coherus BioSciences. However, Cue Biopharma is 1.23 times more volatile than Coherus BioSciences. It trades about 0.01 of its potential returns per unit of risk. Coherus BioSciences is currently generating about -0.02 per unit of risk. If you would invest 192.00 in Cue Biopharma on August 25, 2024 and sell it today you would lose (90.00) from holding Cue Biopharma or give up 46.87% 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. Coherus BioSciences
Performance |
| Timeline |
| Cue Biopharma |
| Coherus BioSciences |
Cue Biopharma and Coherus BioSciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Coherus BioSciences
The main advantage of trading using opposite Cue Biopharma and Coherus BioSciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Coherus BioSciences 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 Coherus BioSciences will offset losses from the drop in Coherus BioSciences' long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Coherus BioSciences vs. Assembly Biosciences | Coherus BioSciences vs. Spero Therapeutics | Coherus BioSciences vs. Achilles Therapeutics PLC | Coherus BioSciences vs. Instil Bio |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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