Correlation Between Cue Biopharma and Sigilon Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Sigilon 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 Sigilon 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 Sigilon Therapeutics, you can compare the effects of market volatilities on Cue Biopharma and Sigilon 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 Sigilon Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Sigilon Therapeutics.
Diversification Opportunities for Cue Biopharma and Sigilon Therapeutics
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cue and Sigilon is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Sigilon Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sigilon 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 Sigilon Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sigilon Therapeutics has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Sigilon Therapeutics go up and down completely randomly.
Pair Corralation between Cue Biopharma and Sigilon Therapeutics
Considering the 90-day investment horizon Cue Biopharma is expected to under-perform the Sigilon Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Cue Biopharma is 5.5 times less risky than Sigilon Therapeutics. The stock trades about -0.01 of its potential returns per unit of risk. The Sigilon Therapeutics is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 491.00 in Sigilon Therapeutics on August 27, 2024 and sell it today you would earn a total of 1,620 from holding Sigilon Therapeutics or generate 329.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 31.85% |
| Values | Daily Returns |
Cue Biopharma vs. Sigilon Therapeutics
Performance |
| Timeline |
| Cue Biopharma |
| Sigilon Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cue Biopharma and Sigilon Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Sigilon Therapeutics
The main advantage of trading using opposite Cue Biopharma and Sigilon Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Sigilon 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 Sigilon Therapeutics will offset losses from the drop in Sigilon Therapeutics' long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Sigilon Therapeutics vs. Reviva Pharmaceuticals Holdings | Sigilon Therapeutics vs. ZyVersa Therapeutics | Sigilon Therapeutics vs. Unicycive Therapeutics | Sigilon Therapeutics vs. Apollomics Class A |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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