Correlation Between Cue Biopharma and Fennec Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Fennec Pharmaceuticals 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 Fennec Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and Fennec Pharmaceuticals, you can compare the effects of market volatilities on Cue Biopharma and Fennec Pharmaceuticals 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 Fennec Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Fennec Pharmaceuticals.
Diversification Opportunities for Cue Biopharma and Fennec Pharmaceuticals
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cue and Fennec is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Fennec Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fennec Pharmaceuticals 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 Fennec Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fennec Pharmaceuticals has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Fennec Pharmaceuticals go up and down completely randomly.
Pair Corralation between Cue Biopharma and Fennec Pharmaceuticals
Considering the 90-day investment horizon Cue Biopharma is expected to under-perform the Fennec Pharmaceuticals. In addition to that, Cue Biopharma is 1.26 times more volatile than Fennec Pharmaceuticals. It trades about -0.26 of its total potential returns per unit of risk. Fennec Pharmaceuticals is currently generating about 0.22 per unit of volatility. If you would invest 473.00 in Fennec Pharmaceuticals on August 29, 2024 and sell it today you would earn a total of 131.00 from holding Fennec Pharmaceuticals or generate 27.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cue Biopharma vs. Fennec Pharmaceuticals
Performance |
| Timeline |
| Cue Biopharma |
| Fennec Pharmaceuticals |
Cue Biopharma and Fennec Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Fennec Pharmaceuticals
The main advantage of trading using opposite Cue Biopharma and Fennec Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Fennec Pharmaceuticals 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 Fennec Pharmaceuticals will offset losses from the drop in Fennec Pharmaceuticals' long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Fennec Pharmaceuticals vs. Eliem Therapeutics | Fennec Pharmaceuticals vs. Scpharmaceuticals | Fennec Pharmaceuticals vs. Milestone Pharmaceuticals | Fennec Pharmaceuticals vs. Seres 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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