Correlation Between Cue Biopharma and Equillium
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Equillium 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 Equillium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and Equillium, you can compare the effects of market volatilities on Cue Biopharma and Equillium 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 Equillium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Equillium.
Diversification Opportunities for Cue Biopharma and Equillium
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cue and Equillium is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Equillium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equillium 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 Equillium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equillium has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Equillium go up and down completely randomly.
Pair Corralation between Cue Biopharma and Equillium
Considering the 90-day investment horizon Cue Biopharma is expected to generate 0.81 times more return on investment than Equillium. However, Cue Biopharma is 1.24 times less risky than Equillium. It trades about -0.17 of its potential returns per unit of risk. Equillium is currently generating about -0.21 per unit of risk. If you would invest 175.00 in Cue Biopharma on August 31, 2024 and sell it today you would lose (53.00) from holding Cue Biopharma or give up 30.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cue Biopharma vs. Equillium
Performance |
| Timeline |
| Cue Biopharma |
| Equillium |
Cue Biopharma and Equillium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Equillium
The main advantage of trading using opposite Cue Biopharma and Equillium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Equillium 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 Equillium will offset losses from the drop in Equillium's long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Equillium vs. Cue Biopharma | Equillium vs. Tff Pharmaceuticals | Equillium vs. Eliem Therapeutics | Equillium vs. Inhibrx |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |