Correlation Between Cue Biopharma and Sutro Biopharma
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Sutro Biopharma 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 Sutro Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and Sutro Biopharma, you can compare the effects of market volatilities on Cue Biopharma and Sutro Biopharma 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 Sutro Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Sutro Biopharma.
Diversification Opportunities for Cue Biopharma and Sutro Biopharma
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cue and Sutro is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Sutro Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sutro Biopharma 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 Sutro Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sutro Biopharma has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Sutro Biopharma go up and down completely randomly.
Pair Corralation between Cue Biopharma and Sutro Biopharma
Considering the 90-day investment horizon Cue Biopharma is expected to generate 2.31 times more return on investment than Sutro Biopharma. However, Cue Biopharma is 2.31 times more volatile than Sutro Biopharma. It trades about 0.13 of its potential returns per unit of risk. Sutro Biopharma is currently generating about -0.12 per unit of risk. If you would invest 66.00 in Cue Biopharma on September 2, 2024 and sell it today you would earn a total of 56.00 from holding Cue Biopharma or generate 84.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cue Biopharma vs. Sutro Biopharma
Performance |
| Timeline |
| Cue Biopharma |
| Sutro Biopharma |
Cue Biopharma and Sutro Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Sutro Biopharma
The main advantage of trading using opposite Cue Biopharma and Sutro Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Sutro Biopharma 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 Sutro Biopharma will offset losses from the drop in Sutro Biopharma's long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Sutro Biopharma vs. Tff Pharmaceuticals | Sutro Biopharma vs. Eliem Therapeutics | Sutro Biopharma vs. Inhibrx | Sutro Biopharma 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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