Correlation Between Cue Biopharma and Gain Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Gain Therapeutics 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 Gain Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and Gain Therapeutics, you can compare the effects of market volatilities on Cue Biopharma and Gain Therapeutics 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 Gain Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Gain Therapeutics.
Diversification Opportunities for Cue Biopharma and Gain Therapeutics
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cue and Gain is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Gain Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gain Therapeutics 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 Gain Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gain Therapeutics has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Gain Therapeutics go up and down completely randomly.
Pair Corralation between Cue Biopharma and Gain Therapeutics
If you would invest 329.00 in Gain Therapeutics on August 26, 2024 and sell it today you would lose (157.00) from holding Gain Therapeutics or give up 47.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cue Biopharma vs. Gain Therapeutics
Performance |
| Timeline |
| Cue Biopharma |
| Gain Therapeutics |
Cue Biopharma and Gain Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Gain Therapeutics
The main advantage of trading using opposite Cue Biopharma and Gain Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Gain Therapeutics 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 Gain Therapeutics will offset losses from the drop in Gain Therapeutics' long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Gain Therapeutics vs. Biovie Inc | Gain Therapeutics vs. In8bio Inc | Gain Therapeutics vs. NewAmsterdam Pharma | Gain Therapeutics vs. Cue Biopharma |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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