Correlation Between Equillium and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both Equillium 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 Equillium and Cue Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equillium and Cue Biopharma, you can compare the effects of market volatilities on Equillium 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 Equillium with a short position of Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equillium and Cue Biopharma.
Diversification Opportunities for Equillium and Cue Biopharma
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Equillium and Cue is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma and Equillium 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 Equillium 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 Equillium i.e., Equillium and Cue Biopharma go up and down completely randomly.
Pair Corralation between Equillium and Cue Biopharma
Allowing for the 90-day total investment horizon Equillium is expected to under-perform the Cue Biopharma. In addition to that, Equillium is 1.24 times more volatile than Cue Biopharma. It trades about -0.21 of its total potential returns per unit of risk. Cue Biopharma is currently generating about -0.17 per unit of volatility. If you would invest 175.00 in Cue Biopharma on August 31, 2024 and sell it today you would lose (53.00) from holding Cue Biopharma or give up 30.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equillium vs. Cue Biopharma
Performance |
| Timeline |
| Equillium |
| Cue Biopharma |
Equillium and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equillium and Cue Biopharma
The main advantage of trading using opposite Equillium and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equillium 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.| Equillium vs. Cue Biopharma | Equillium vs. Tff Pharmaceuticals | Equillium vs. Eliem Therapeutics | Equillium 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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