Correlation Between Cue Biopharma and Erasca
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Erasca 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 Erasca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and Erasca Inc, you can compare the effects of market volatilities on Cue Biopharma and Erasca 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 Erasca. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Erasca.
Diversification Opportunities for Cue Biopharma and Erasca
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cue and Erasca is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Erasca Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erasca Inc 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 Erasca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erasca Inc has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Erasca go up and down completely randomly.
Pair Corralation between Cue Biopharma and Erasca
Considering the 90-day investment horizon Cue Biopharma is expected to under-perform the Erasca. In addition to that, Cue Biopharma is 1.88 times more volatile than Erasca Inc. It trades about -0.01 of its total potential returns per unit of risk. Erasca Inc is currently generating about 0.06 per unit of volatility. If you would invest 185.00 in Erasca Inc on September 2, 2024 and sell it today you would earn a total of 101.00 from holding Erasca Inc or generate 54.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cue Biopharma vs. Erasca Inc
Performance |
| Timeline |
| Cue Biopharma |
| Erasca Inc |
Cue Biopharma and Erasca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Erasca
The main advantage of trading using opposite Cue Biopharma and Erasca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Erasca 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 Erasca will offset losses from the drop in Erasca's long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Erasca vs. Century Therapeutics | Erasca vs. Keros Therapeutics | Erasca vs. Monte Rosa Therapeutics | Erasca vs. Design Therapeutics |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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