Correlation Between Puma Biotechnology and Cingulate
Can any of the company-specific risk be diversified away by investing in both Puma Biotechnology and Cingulate 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 Puma Biotechnology and Cingulate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Biotechnology and Cingulate, you can compare the effects of market volatilities on Puma Biotechnology and Cingulate 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 Puma Biotechnology with a short position of Cingulate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Biotechnology and Cingulate.
Diversification Opportunities for Puma Biotechnology and Cingulate
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Puma and Cingulate is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Puma Biotechnology and Cingulate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cingulate and Puma Biotechnology 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 Puma Biotechnology are associated (or correlated) with Cingulate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cingulate has no effect on the direction of Puma Biotechnology i.e., Puma Biotechnology and Cingulate go up and down completely randomly.
Pair Corralation between Puma Biotechnology and Cingulate
Given the investment horizon of 90 days Puma Biotechnology is expected to generate 8.01 times less return on investment than Cingulate. In addition to that, Puma Biotechnology is 1.77 times more volatile than Cingulate. It trades about 0.0 of its total potential returns per unit of risk. Cingulate is currently generating about 0.02 per unit of volatility. If you would invest 422.00 in Cingulate on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Cingulate or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma Biotechnology vs. Cingulate
Performance |
| Timeline |
| Puma Biotechnology |
| Cingulate |
Puma Biotechnology and Cingulate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Biotechnology and Cingulate
The main advantage of trading using opposite Puma Biotechnology and Cingulate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Biotechnology position performs unexpectedly, Cingulate 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 Cingulate will offset losses from the drop in Cingulate's long position.| Puma Biotechnology vs. Ultragenyx | Puma Biotechnology vs. Crinetics Pharmaceuticals | Puma Biotechnology vs. Arvinas | Puma Biotechnology vs. Revolution Medicines |
| Cingulate vs. Puma Biotechnology | Cingulate vs. Iovance Biotherapeutics | Cingulate vs. Day One Biopharmaceuticals | Cingulate vs. Inozyme Pharma |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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