Correlation Between Cue Biopharma and Mink Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Mink 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 Mink 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 Mink Therapeutics, you can compare the effects of market volatilities on Cue Biopharma and Mink 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 Mink Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Mink Therapeutics.
Diversification Opportunities for Cue Biopharma and Mink Therapeutics
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cue and Mink is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Mink Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mink 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 Mink Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mink Therapeutics has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Mink Therapeutics go up and down completely randomly.
Pair Corralation between Cue Biopharma and Mink Therapeutics
Considering the 90-day investment horizon Cue Biopharma is expected to generate 1.14 times more return on investment than Mink Therapeutics. However, Cue Biopharma is 1.14 times more volatile than Mink Therapeutics. It trades about 0.0 of its potential returns per unit of risk. Mink Therapeutics is currently generating about -0.01 per unit of risk. If you would invest 308.00 in Cue Biopharma on September 2, 2024 and sell it today you would lose (186.00) from holding Cue Biopharma or give up 60.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cue Biopharma vs. Mink Therapeutics
Performance |
| Timeline |
| Cue Biopharma |
| Mink Therapeutics |
Cue Biopharma and Mink Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Mink Therapeutics
The main advantage of trading using opposite Cue Biopharma and Mink Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Mink 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 Mink Therapeutics will offset losses from the drop in Mink Therapeutics' long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Mink Therapeutics vs. Tff Pharmaceuticals | Mink Therapeutics vs. Eliem Therapeutics | Mink Therapeutics vs. Inhibrx | Mink Therapeutics vs. Enliven 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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