Correlation Between PepGen and Cullinan Oncology
Can any of the company-specific risk be diversified away by investing in both PepGen 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 PepGen and Cullinan Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and Cullinan Oncology LLC, you can compare the effects of market volatilities on PepGen 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 PepGen with a short position of Cullinan Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Cullinan Oncology.
Diversification Opportunities for PepGen and Cullinan Oncology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PepGen and Cullinan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding PepGen 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 PepGen 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 PepGen 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 PepGen i.e., PepGen and Cullinan Oncology go up and down completely randomly.
Pair Corralation between PepGen and Cullinan Oncology
Given the investment horizon of 90 days PepGen is expected to under-perform the Cullinan Oncology. In addition to that, PepGen is 1.62 times more volatile than Cullinan Oncology LLC. It trades about -0.28 of its total potential returns per unit of risk. Cullinan Oncology LLC is currently generating about -0.24 per unit of volatility. If you would invest 1,615 in Cullinan Oncology LLC on August 29, 2024 and sell it today you would lose (338.00) from holding Cullinan Oncology LLC or give up 20.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PepGen vs. Cullinan Oncology LLC
Performance |
| Timeline |
| PepGen |
| Cullinan Oncology LLC |
PepGen and Cullinan Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and Cullinan Oncology
The main advantage of trading using opposite PepGen and Cullinan Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen 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.| PepGen vs. Eliem Therapeutics | PepGen vs. Scpharmaceuticals | PepGen vs. Milestone Pharmaceuticals | PepGen vs. Seres Therapeutics |
| Cullinan Oncology vs. Eliem Therapeutics | Cullinan Oncology vs. Scpharmaceuticals | Cullinan Oncology vs. Milestone Pharmaceuticals | Cullinan Oncology vs. Seres 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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