Correlation Between Fate Therapeutics and Cullinan Oncology
Can any of the company-specific risk be diversified away by investing in both Fate Therapeutics 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 Fate Therapeutics and Cullinan Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fate Therapeutics and Cullinan Oncology LLC, you can compare the effects of market volatilities on Fate Therapeutics 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 Fate Therapeutics with a short position of Cullinan Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fate Therapeutics and Cullinan Oncology.
Diversification Opportunities for Fate Therapeutics and Cullinan Oncology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fate and Cullinan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fate Therapeutics 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 Fate 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 Fate Therapeutics 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 Fate Therapeutics i.e., Fate Therapeutics and Cullinan Oncology go up and down completely randomly.
Pair Corralation between Fate Therapeutics and Cullinan Oncology
Given the investment horizon of 90 days Fate Therapeutics is expected to under-perform the Cullinan Oncology. In addition to that, Fate Therapeutics is 2.8 times more volatile than Cullinan Oncology LLC. It trades about -0.16 of its total potential returns per unit of risk. Cullinan Oncology LLC is currently generating about -0.11 per unit of volatility. If you would invest 1,254 in Cullinan Oncology LLC on September 24, 2024 and sell it today you would lose (94.00) from holding Cullinan Oncology LLC or give up 7.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Fate Therapeutics vs. Cullinan Oncology LLC
Performance |
Timeline |
Fate Therapeutics |
Cullinan Oncology LLC |
Fate Therapeutics and Cullinan Oncology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fate Therapeutics and Cullinan Oncology
The main advantage of trading using opposite Fate Therapeutics and Cullinan Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fate Therapeutics 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.Fate Therapeutics vs. Atara Biotherapeutics | Fate Therapeutics vs. Sana Biotechnology | Fate Therapeutics vs. Caribou Biosciences | Fate Therapeutics vs. Arcus Biosciences |
Cullinan Oncology vs. Fate Therapeutics | Cullinan Oncology vs. Sana Biotechnology | Cullinan Oncology vs. Caribou Biosciences | Cullinan Oncology vs. Arcus Biosciences |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |