Correlation Between Pasithea Therapeutics and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both Pasithea 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 Pasithea 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 Pasithea Therapeutics Corp and Cue Biopharma, you can compare the effects of market volatilities on Pasithea 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 Pasithea Therapeutics with a short position of Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pasithea Therapeutics and Cue Biopharma.
Diversification Opportunities for Pasithea Therapeutics and Cue Biopharma
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pasithea and Cue is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Pasithea Therapeutics Corp and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma and Pasithea 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 Pasithea Therapeutics Corp 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 Pasithea Therapeutics i.e., Pasithea Therapeutics and Cue Biopharma go up and down completely randomly.
Pair Corralation between Pasithea Therapeutics and Cue Biopharma
Assuming the 90 days horizon Pasithea Therapeutics Corp is expected to generate 0.65 times more return on investment than Cue Biopharma. However, Pasithea Therapeutics Corp is 1.54 times less risky than Cue Biopharma. It trades about -0.04 of its potential returns per unit of risk. Cue Biopharma is currently generating about -0.1 per unit of risk. If you would invest 2.10 in Pasithea Therapeutics Corp on September 2, 2024 and sell it today you would lose (0.07) from holding Pasithea Therapeutics Corp or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
Pasithea Therapeutics Corp vs. Cue Biopharma
Performance |
| Timeline |
| Pasithea Therapeutics |
| Cue Biopharma |
Pasithea Therapeutics and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pasithea Therapeutics and Cue Biopharma
The main advantage of trading using opposite Pasithea Therapeutics and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pasithea 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.| Pasithea Therapeutics vs. Tff Pharmaceuticals | Pasithea Therapeutics vs. Eliem Therapeutics | Pasithea Therapeutics vs. Inhibrx | Pasithea Therapeutics vs. Enliven Therapeutics |
| 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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