Correlation Between GH Research and Cullinan Oncology
Can any of the company-specific risk be diversified away by investing in both GH Research and Cullinan Oncology 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 GH Research and Cullinan Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GH Research PLC and Cullinan Oncology LLC, you can compare the effects of market volatilities on GH Research and Cullinan Oncology 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 GH Research with a short position of Cullinan Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GH Research and Cullinan Oncology.
Diversification Opportunities for GH Research and Cullinan Oncology
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GHRS and Cullinan is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding GH Research PLC and Cullinan Oncology LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullinan Oncology LLC and GH Research 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 GH Research PLC are associated (or correlated) with Cullinan Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullinan Oncology LLC has no effect on the direction of GH Research i.e., GH Research and Cullinan Oncology go up and down completely randomly.
Pair Corralation between GH Research and Cullinan Oncology
Given the investment horizon of 90 days GH Research PLC is expected to generate 8.44 times more return on investment than Cullinan Oncology. However, GH Research is 8.44 times more volatile than Cullinan Oncology LLC. It trades about 0.07 of its potential returns per unit of risk. Cullinan Oncology LLC is currently generating about -0.62 per unit of risk. If you would invest 969.00 in GH Research PLC on December 1, 2024 and sell it today you would earn a total of 44.00 from holding GH Research PLC or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GH Research PLC vs. Cullinan Oncology LLC
Performance |
| Timeline |
| GH Research PLC |
| Cullinan Oncology LLC |
GH Research and Cullinan Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GH Research and Cullinan Oncology
The main advantage of trading using opposite GH Research and Cullinan Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GH Research position performs unexpectedly, Cullinan Oncology 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 Cullinan Oncology will offset losses from the drop in Cullinan Oncology's long position.| GH Research vs. Molecular Partners AG | GH Research vs. MediciNova | GH Research vs. Anebulo Pharmaceuticals | GH Research vs. Champions Oncology |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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