Correlation Between Graphite Bio and Cullinan Oncology
Can any of the company-specific risk be diversified away by investing in both Graphite Bio 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 Graphite Bio and Cullinan Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphite Bio and Cullinan Oncology LLC, you can compare the effects of market volatilities on Graphite Bio 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 Graphite Bio with a short position of Cullinan Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphite Bio and Cullinan Oncology.
Diversification Opportunities for Graphite Bio and Cullinan Oncology
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Graphite and Cullinan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Graphite Bio 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 Graphite Bio 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 Graphite Bio 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 Graphite Bio i.e., Graphite Bio and Cullinan Oncology go up and down completely randomly.
Pair Corralation between Graphite Bio and Cullinan Oncology
Given the investment horizon of 90 days Graphite Bio is expected to under-perform the Cullinan Oncology. But the stock apears to be less risky and, when comparing its historical volatility, Graphite Bio is 1.73 times less risky than Cullinan Oncology. The stock trades about -0.07 of its potential returns per unit of risk. The Cullinan Oncology LLC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,311 in Cullinan Oncology LLC on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Cullinan Oncology LLC or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 8.33% |
| Values | Daily Returns |
Graphite Bio vs. Cullinan Oncology LLC
Performance |
| Timeline |
| Graphite Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cullinan Oncology LLC |
Graphite Bio and Cullinan Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphite Bio and Cullinan Oncology
The main advantage of trading using opposite Graphite Bio and Cullinan Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphite Bio 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.| Graphite Bio vs. Assembly Biosciences | Graphite Bio vs. Instil Bio | Graphite Bio vs. Nuvation Bio | Graphite Bio vs. Achilles Therapeutics PLC |
| Cullinan Oncology vs. Bolt Biotherapeutics | Cullinan Oncology vs. Day One Biopharmaceuticals | Cullinan Oncology vs. Lyra Therapeutics | Cullinan Oncology vs. Autolus 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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