Correlation Between Cue Biopharma and Fortress Biotech
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Fortress Biotech 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 Fortress Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and Fortress Biotech, you can compare the effects of market volatilities on Cue Biopharma and Fortress Biotech 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 Fortress Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Fortress Biotech.
Diversification Opportunities for Cue Biopharma and Fortress Biotech
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cue and Fortress is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Fortress Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Biotech 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 Fortress Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Biotech has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Fortress Biotech go up and down completely randomly.
Pair Corralation between Cue Biopharma and Fortress Biotech
Considering the 90-day investment horizon Cue Biopharma is expected to under-perform the Fortress Biotech. In addition to that, Cue Biopharma is 1.76 times more volatile than Fortress Biotech. It trades about -0.17 of its total potential returns per unit of risk. Fortress Biotech is currently generating about -0.04 per unit of volatility. If you would invest 194.00 in Fortress Biotech on August 31, 2024 and sell it today you would lose (11.00) from holding Fortress Biotech or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cue Biopharma vs. Fortress Biotech
Performance |
| Timeline |
| Cue Biopharma |
| Fortress Biotech |
Cue Biopharma and Fortress Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Fortress Biotech
The main advantage of trading using opposite Cue Biopharma and Fortress Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Fortress Biotech 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 Fortress Biotech will offset losses from the drop in Fortress Biotech's long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Fortress Biotech vs. Cue Biopharma | Fortress Biotech vs. Eliem Therapeutics | Fortress Biotech vs. Inhibrx | Fortress Biotech vs. Molecular Partners AG |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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