Correlation Between Kronos Bio and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both Kronos Bio 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 Kronos Bio and Cue Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kronos Bio and Cue Biopharma, you can compare the effects of market volatilities on Kronos Bio 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 Kronos Bio with a short position of Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kronos Bio and Cue Biopharma.
Diversification Opportunities for Kronos Bio and Cue Biopharma
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kronos and Cue is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kronos Bio and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma and Kronos 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 Kronos Bio 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 Kronos Bio i.e., Kronos Bio and Cue Biopharma go up and down completely randomly.
Pair Corralation between Kronos Bio and Cue Biopharma
Given the investment horizon of 90 days Kronos Bio is expected to generate 0.61 times more return on investment than Cue Biopharma. However, Kronos Bio is 1.63 times less risky than Cue Biopharma. It trades about 0.02 of its potential returns per unit of risk. Cue Biopharma is currently generating about 0.0 per unit of risk. If you would invest 103.00 in Kronos Bio on September 3, 2024 and sell it today you would lose (8.00) from holding Kronos Bio or give up 7.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kronos Bio vs. Cue Biopharma
Performance |
| Timeline |
| Kronos Bio |
| Cue Biopharma |
Kronos Bio and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kronos Bio and Cue Biopharma
The main advantage of trading using opposite Kronos Bio and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kronos Bio 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.| Kronos Bio vs. DiaMedica Therapeutics | Kronos Bio vs. Lyra Therapeutics | Kronos Bio vs. Centessa Pharmaceuticals PLC |
| Cue Biopharma vs. DiaMedica Therapeutics | Cue Biopharma vs. Lyra Therapeutics | Cue Biopharma vs. Centessa Pharmaceuticals PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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