Correlation Between Cue Biopharma and Spero Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Spero 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 Spero 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 Spero Therapeutics, you can compare the effects of market volatilities on Cue Biopharma and Spero 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 Spero Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Spero Therapeutics.
Diversification Opportunities for Cue Biopharma and Spero Therapeutics
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cue and Spero is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Spero Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spero 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 Spero Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spero Therapeutics has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Spero Therapeutics go up and down completely randomly.
Pair Corralation between Cue Biopharma and Spero Therapeutics
Considering the 90-day investment horizon Cue Biopharma is expected to under-perform the Spero Therapeutics. In addition to that, Cue Biopharma is 2.48 times more volatile than Spero Therapeutics. It trades about -0.18 of its total potential returns per unit of risk. Spero Therapeutics is currently generating about -0.09 per unit of volatility. If you would invest 126.00 in Spero Therapeutics on August 25, 2024 and sell it today you would lose (10.00) from holding Spero Therapeutics or give up 7.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cue Biopharma vs. Spero Therapeutics
Performance |
| Timeline |
| Cue Biopharma |
| Spero Therapeutics |
Cue Biopharma and Spero Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Spero Therapeutics
The main advantage of trading using opposite Cue Biopharma and Spero Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Spero 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 Spero Therapeutics will offset losses from the drop in Spero Therapeutics' long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Spero Therapeutics vs. Assembly Biosciences | Spero Therapeutics vs. Achilles Therapeutics PLC | Spero Therapeutics vs. Instil Bio | Spero Therapeutics vs. CytomX 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |