Correlation Between Cue Biopharma and Sana Biotechnology
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Sana Biotechnology 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 Sana Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and Sana Biotechnology, you can compare the effects of market volatilities on Cue Biopharma and Sana Biotechnology 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 Sana Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Sana Biotechnology.
Diversification Opportunities for Cue Biopharma and Sana Biotechnology
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cue and Sana is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Sana Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sana Biotechnology 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 Sana Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sana Biotechnology has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Sana Biotechnology go up and down completely randomly.
Pair Corralation between Cue Biopharma and Sana Biotechnology
Considering the 90-day investment horizon Cue Biopharma is expected to generate 1.49 times more return on investment than Sana Biotechnology. However, Cue Biopharma is 1.49 times more volatile than Sana Biotechnology. It trades about -0.17 of its potential returns per unit of risk. Sana Biotechnology is currently generating about -0.29 per unit of risk. If you would invest 175.00 in Cue Biopharma on August 31, 2024 and sell it today you would lose (53.00) from holding Cue Biopharma or give up 30.29% 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. Sana Biotechnology
Performance |
| Timeline |
| Cue Biopharma |
| Sana Biotechnology |
Cue Biopharma and Sana Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Sana Biotechnology
The main advantage of trading using opposite Cue Biopharma and Sana Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Sana Biotechnology 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 Sana Biotechnology will offset losses from the drop in Sana Biotechnology's long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Sana Biotechnology vs. Cue Biopharma | Sana Biotechnology vs. Eliem Therapeutics | Sana Biotechnology vs. Inhibrx | Sana Biotechnology 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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