Correlation Between CohBar and Fate Therapeutics
Can any of the company-specific risk be diversified away by investing in both CohBar and Fate 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 CohBar and Fate Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CohBar Inc and Fate Therapeutics, you can compare the effects of market volatilities on CohBar and Fate 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 CohBar with a short position of Fate Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CohBar and Fate Therapeutics.
Diversification Opportunities for CohBar and Fate Therapeutics
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CohBar and Fate is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding CohBar Inc and Fate Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fate Therapeutics and CohBar 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 CohBar Inc are associated (or correlated) with Fate Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fate Therapeutics has no effect on the direction of CohBar i.e., CohBar and Fate Therapeutics go up and down completely randomly.
Pair Corralation between CohBar and Fate Therapeutics
If you would invest 249.00 in Fate Therapeutics on August 31, 2024 and sell it today you would earn a total of 68.00 from holding Fate Therapeutics or generate 27.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
CohBar Inc vs. Fate Therapeutics
Performance |
| Timeline |
| CohBar Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fate Therapeutics |
CohBar and Fate Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CohBar and Fate Therapeutics
The main advantage of trading using opposite CohBar and Fate Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CohBar position performs unexpectedly, Fate 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 Fate Therapeutics will offset losses from the drop in Fate Therapeutics' long position.| CohBar vs. Enveric Biosciences | CohBar vs. Elevation Oncology | CohBar vs. Hepion Pharmaceuticals | CohBar vs. Zura Bio Limited |
| Fate Therapeutics vs. Atara Biotherapeutics | Fate Therapeutics vs. Sana Biotechnology | Fate Therapeutics vs. Caribou Biosciences | Fate Therapeutics vs. Arcus Biosciences |
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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