Correlation Between Elicio Therapeutics and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both Elicio Therapeutics and Cue 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 Elicio Therapeutics and Cue Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elicio Therapeutics and Cue Biopharma, you can compare the effects of market volatilities on Elicio Therapeutics and Cue 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 Elicio Therapeutics with a short position of Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elicio Therapeutics and Cue Biopharma.
Diversification Opportunities for Elicio Therapeutics and Cue Biopharma
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Elicio and Cue is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Elicio Therapeutics and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma and Elicio Therapeutics 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 Elicio Therapeutics are associated (or correlated) with Cue Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Biopharma has no effect on the direction of Elicio Therapeutics i.e., Elicio Therapeutics and Cue Biopharma go up and down completely randomly.
Pair Corralation between Elicio Therapeutics and Cue Biopharma
Given the investment horizon of 90 days Elicio Therapeutics is expected to generate 0.48 times more return on investment than Cue Biopharma. However, Elicio Therapeutics is 2.09 times less risky than Cue Biopharma. It trades about 0.25 of its potential returns per unit of risk. Cue Biopharma is currently generating about -0.17 per unit of risk. If you would invest 416.00 in Elicio Therapeutics on August 31, 2024 and sell it today you would earn a total of 89.00 from holding Elicio Therapeutics or generate 21.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elicio Therapeutics vs. Cue Biopharma
Performance |
| Timeline |
| Elicio Therapeutics |
| Cue Biopharma |
Elicio Therapeutics and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elicio Therapeutics and Cue Biopharma
The main advantage of trading using opposite Elicio Therapeutics and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elicio Therapeutics position performs unexpectedly, Cue 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 Cue Biopharma will offset losses from the drop in Cue Biopharma's long position.| Elicio Therapeutics vs. Cue Biopharma | Elicio Therapeutics vs. Tff Pharmaceuticals | Elicio Therapeutics vs. Eliem Therapeutics | Elicio Therapeutics vs. Inhibrx |
| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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