Correlation Between Nkarta and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both Nkarta 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 Nkarta and Cue Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nkarta Inc and Cue Biopharma, you can compare the effects of market volatilities on Nkarta 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 Nkarta with a short position of Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nkarta and Cue Biopharma.
Diversification Opportunities for Nkarta and Cue Biopharma
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nkarta and Cue is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma and Nkarta 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 Nkarta Inc 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 Nkarta i.e., Nkarta and Cue Biopharma go up and down completely randomly.
Pair Corralation between Nkarta and Cue Biopharma
Given the investment horizon of 90 days Nkarta Inc is expected to under-perform the Cue Biopharma. But the stock apears to be less risky and, when comparing its historical volatility, Nkarta Inc is 1.98 times less risky than Cue Biopharma. The stock trades about -0.4 of its potential returns per unit of risk. The Cue Biopharma is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 156.00 in Cue Biopharma on August 25, 2024 and sell it today you would lose (54.00) from holding Cue Biopharma or give up 34.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nkarta Inc vs. Cue Biopharma
Performance |
| Timeline |
| Nkarta Inc |
| Cue Biopharma |
Nkarta and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nkarta and Cue Biopharma
The main advantage of trading using opposite Nkarta and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta 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.| Nkarta vs. Eliem Therapeutics | Nkarta vs. HCW Biologics | Nkarta vs. RenovoRx | Nkarta vs. Scpharmaceuticals |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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