Correlation Between Cue Biopharma and Kodiak Sciences
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Kodiak Sciences 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 Kodiak Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and Kodiak Sciences, you can compare the effects of market volatilities on Cue Biopharma and Kodiak Sciences 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 Kodiak Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Kodiak Sciences.
Diversification Opportunities for Cue Biopharma and Kodiak Sciences
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cue and Kodiak is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Kodiak Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Sciences 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 Kodiak Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Sciences has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Kodiak Sciences go up and down completely randomly.
Pair Corralation between Cue Biopharma and Kodiak Sciences
Considering the 90-day investment horizon Cue Biopharma is expected to under-perform the Kodiak Sciences. In addition to that, Cue Biopharma is 1.66 times more volatile than Kodiak Sciences. It trades about 0.0 of its total potential returns per unit of risk. Kodiak Sciences is currently generating about 0.03 per unit of volatility. If you would invest 601.00 in Kodiak Sciences on August 27, 2024 and sell it today you would earn a total of 18.00 from holding Kodiak Sciences or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cue Biopharma vs. Kodiak Sciences
Performance |
| Timeline |
| Cue Biopharma |
| Kodiak Sciences |
Cue Biopharma and Kodiak Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Kodiak Sciences
The main advantage of trading using opposite Cue Biopharma and Kodiak Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Kodiak Sciences 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 Kodiak Sciences will offset losses from the drop in Kodiak Sciences' long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Kodiak Sciences vs. Eliem Therapeutics | Kodiak Sciences vs. HCW Biologics | Kodiak Sciences vs. Scpharmaceuticals | Kodiak Sciences vs. Milestone Pharmaceuticals |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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