Correlation Between Fate Therapeutics and CohBar
Can any of the company-specific risk be diversified away by investing in both Fate Therapeutics and CohBar 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 Fate Therapeutics and CohBar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fate Therapeutics and CohBar Inc, you can compare the effects of market volatilities on Fate Therapeutics and CohBar 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 Fate Therapeutics with a short position of CohBar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fate Therapeutics and CohBar.
Diversification Opportunities for Fate Therapeutics and CohBar
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fate and CohBar is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Fate Therapeutics and CohBar Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CohBar Inc and Fate 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 Fate Therapeutics are associated (or correlated) with CohBar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CohBar Inc has no effect on the direction of Fate Therapeutics i.e., Fate Therapeutics and CohBar go up and down completely randomly.
Pair Corralation between Fate Therapeutics and CohBar
If you would invest 299.00 in CohBar Inc on August 27, 2024 and sell it today you would earn a total of 0.00 from holding CohBar Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fate Therapeutics vs. CohBar Inc
Performance |
| Timeline |
| Fate Therapeutics |
| CohBar Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fate Therapeutics and CohBar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fate Therapeutics and CohBar
The main advantage of trading using opposite Fate Therapeutics and CohBar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fate Therapeutics position performs unexpectedly, CohBar 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 CohBar will offset losses from the drop in CohBar's long position.| Fate Therapeutics vs. Atara Biotherapeutics | Fate Therapeutics vs. Sana Biotechnology | Fate Therapeutics vs. Caribou Biosciences | Fate Therapeutics vs. Arcus Biosciences |
| CohBar vs. Enveric Biosciences | CohBar vs. Elevation Oncology | CohBar vs. Hepion Pharmaceuticals | CohBar vs. Zura Bio Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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