Correlation Between Erasca and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both Erasca 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 Erasca and Cue Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erasca Inc and Cue Biopharma, you can compare the effects of market volatilities on Erasca 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 Erasca with a short position of Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erasca and Cue Biopharma.
Diversification Opportunities for Erasca and Cue Biopharma
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Erasca and Cue is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Erasca Inc and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma and Erasca 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 Erasca Inc 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 Erasca i.e., Erasca and Cue Biopharma go up and down completely randomly.
Pair Corralation between Erasca and Cue Biopharma
Given the investment horizon of 90 days Erasca Inc is expected to generate 0.48 times more return on investment than Cue Biopharma. However, Erasca Inc is 2.08 times less risky than Cue Biopharma. It trades about 0.11 of its potential returns per unit of risk. Cue Biopharma is currently generating about -0.17 per unit of risk. If you would invest 270.00 in Erasca Inc on August 31, 2024 and sell it today you would earn a total of 22.00 from holding Erasca Inc or generate 8.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Erasca Inc vs. Cue Biopharma
Performance |
| Timeline |
| Erasca Inc |
| Cue Biopharma |
Erasca and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erasca and Cue Biopharma
The main advantage of trading using opposite Erasca and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erasca 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.| Erasca vs. Cue Biopharma | Erasca vs. Eliem Therapeutics | Erasca vs. Inhibrx | Erasca vs. Molecular Partners AG |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |