Correlation Between Gain Therapeutics and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both Gain 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 Gain 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 Gain Therapeutics and Cue Biopharma, you can compare the effects of market volatilities on Gain 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 Gain Therapeutics with a short position of Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gain Therapeutics and Cue Biopharma.
Diversification Opportunities for Gain Therapeutics and Cue Biopharma
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gain and Cue is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Gain Therapeutics and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma and Gain 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 Gain 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 Gain Therapeutics i.e., Gain Therapeutics and Cue Biopharma go up and down completely randomly.
Pair Corralation between Gain Therapeutics and Cue Biopharma
Given the investment horizon of 90 days Gain Therapeutics is expected to generate 0.76 times more return on investment than Cue Biopharma. However, Gain Therapeutics is 1.31 times less risky than Cue Biopharma. It trades about 0.0 of its potential returns per unit of risk. Cue Biopharma is currently generating about 0.0 per unit of risk. If you would invest 305.00 in Gain Therapeutics on August 31, 2024 and sell it today you would lose (131.00) from holding Gain Therapeutics or give up 42.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gain Therapeutics vs. Cue Biopharma
Performance |
| Timeline |
| Gain Therapeutics |
| Cue Biopharma |
Gain Therapeutics and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gain Therapeutics and Cue Biopharma
The main advantage of trading using opposite Gain Therapeutics and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gain 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.| Gain Therapeutics vs. In8bio Inc | Gain Therapeutics vs. Cue Biopharma | Gain Therapeutics vs. Tff Pharmaceuticals | Gain Therapeutics vs. Lantern Pharma |
| 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets |