Correlation Between Cullinan Oncology and Structure Therapeutics

Can any of the company-specific risk be diversified away by investing in both Cullinan Oncology and Structure Therapeutics 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 Cullinan Oncology and Structure Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cullinan Oncology LLC and Structure Therapeutics American, you can compare the effects of market volatilities on Cullinan Oncology and Structure Therapeutics 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 Cullinan Oncology with a short position of Structure Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullinan Oncology and Structure Therapeutics.

Diversification Opportunities for Cullinan Oncology and Structure Therapeutics

0.82

Correlation Coefficient

Cullinan Oncology  Structure Therapeutics

Very poor diversification

The 3 months correlation between Cullinan and Structure is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cullinan Oncology LLC and Structure Therapeutics America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Structure Therapeutics and Cullinan Oncology 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 Cullinan Oncology LLC are associated (or correlated) with Structure Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Structure Therapeutics has no effect on the direction of Cullinan Oncology i.e., Cullinan Oncology and Structure Therapeutics go up and down completely randomly.

Pair Corralation between Cullinan Oncology and Structure Therapeutics

Given the investment horizon of 90 days Cullinan Oncology LLC is expected to under-perform the Structure Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Cullinan Oncology LLC is 1.54 times less risky than Structure Therapeutics. The stock trades about -0.21 of its potential returns per unit of risk. The Structure Therapeutics American is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  2,663  in Structure Therapeutics American on December 30, 2024 and sell it today you would lose (686.00) from holding Structure Therapeutics American or give up 25.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Cullinan Oncology LLC  vs.  Structure Therapeutics America

Cullinan Oncology LLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cullinan Oncology LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Structure Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Structure Therapeutics American has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Cullinan Oncology and Structure Therapeutics

The main advantage of trading using opposite Cullinan Oncology and Structure Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullinan Oncology position performs unexpectedly, Structure Therapeutics 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 Structure Therapeutics will offset losses from the drop in Structure Therapeutics' long position.

The idea behind Cullinan Oncology LLC and Structure Therapeutics American pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..