Correlation Between Cue Biopharma and Shattuck Labs
Can any of the company-specific risk be diversified away by investing in both Cue Biopharma and Shattuck Labs 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 Shattuck Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cue Biopharma and Shattuck Labs, you can compare the effects of market volatilities on Cue Biopharma and Shattuck Labs 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 Shattuck Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cue Biopharma and Shattuck Labs.
Diversification Opportunities for Cue Biopharma and Shattuck Labs
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cue and Shattuck is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cue Biopharma and Shattuck Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shattuck Labs 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 Shattuck Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shattuck Labs has no effect on the direction of Cue Biopharma i.e., Cue Biopharma and Shattuck Labs go up and down completely randomly.
Pair Corralation between Cue Biopharma and Shattuck Labs
Considering the 90-day investment horizon Cue Biopharma is expected to under-perform the Shattuck Labs. In addition to that, Cue Biopharma is 1.4 times more volatile than Shattuck Labs. It trades about -0.17 of its total potential returns per unit of risk. Shattuck Labs is currently generating about -0.12 per unit of volatility. If you would invest 131.00 in Shattuck Labs on August 31, 2024 and sell it today you would lose (22.00) from holding Shattuck Labs or give up 16.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cue Biopharma vs. Shattuck Labs
Performance |
| Timeline |
| Cue Biopharma |
| Shattuck Labs |
Cue Biopharma and Shattuck Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cue Biopharma and Shattuck Labs
The main advantage of trading using opposite Cue Biopharma and Shattuck Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cue Biopharma position performs unexpectedly, Shattuck Labs 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 Shattuck Labs will offset losses from the drop in Shattuck Labs' long position.| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem Therapeutics |
| Shattuck Labs vs. Cue Biopharma | Shattuck Labs vs. Eliem Therapeutics | Shattuck Labs vs. Inhibrx | Shattuck Labs 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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