Correlation Between Cue Biopharma and DBV Technologies
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and DBV Technologies 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 DBV Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and DBV Technologies, you can compare the effects of market volatilities on Cue Biopharma and DBV Technologies 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 DBV Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and DBV Technologies.
Diversification Opportunities for Cue Biopharma and DBV Technologies
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cue and DBV is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and DBV Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBV Technologies 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 DBV Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBV Technologies has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and DBV Technologies go up and down completely randomly.
Pair Corralation between Cue Biopharma and DBV Technologies
Considering the 90-day investment horizon Cue Biopharma is expected to generate 1.74 times more return on investment than DBV Technologies. However, Cue Biopharma is 1.74 times more volatile than DBV Technologies. It trades about -0.01 of its potential returns per unit of risk. DBV Technologies is currently generating about -0.04 per unit of risk. If you would invest 305.00 in Cue Biopharma on September 2, 2024 and sell it today you would lose (183.00) from holding Cue Biopharma or give up 60.0% 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. DBV Technologies
Performance |
| Timeline |
| Cue Biopharma |
| DBV Technologies |
Cue Biopharma and DBV Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and DBV Technologies
The main advantage of trading using opposite Cue Biopharma and DBV Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, DBV Technologies 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 DBV Technologies will offset losses from the drop in DBV Technologies' long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| DBV Technologies vs. Oric Pharmaceuticals | DBV Technologies vs. Lyra Therapeutics | DBV Technologies vs. Inhibrx | DBV Technologies vs. ESSA Pharma |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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