Correlation Between Coya Therapeutics, and Cardiff Oncology

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

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

Diversification Opportunities for Coya Therapeutics, and Cardiff Oncology

0.37

Correlation Coefficient

Coya Therapeutics,  Cardiff Oncology

Weak diversification

The 3 months correlation between Coya and Cardiff is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Coya Therapeutics, Common and Cardiff Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardiff Oncology and Coya 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 Coya Therapeutics, Common are associated (or correlated) with Cardiff Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardiff Oncology has no effect on the direction of Coya Therapeutics, i.e., Coya Therapeutics, and Cardiff Oncology go up and down completely randomly.

Pair Corralation between Coya Therapeutics, and Cardiff Oncology

Given the investment horizon of 90 days Coya Therapeutics, Common is expected to generate 0.44 times more return on investment than Cardiff Oncology. However, Coya Therapeutics, Common is 2.3 times less risky than Cardiff Oncology. It trades about -0.27 of its potential returns per unit of risk. Cardiff Oncology is currently generating about -0.27 per unit of risk. If you would invest  726.00  in Coya Therapeutics, Common on September 7, 2024 and sell it today you would lose (128.00) from holding Coya Therapeutics, Common or give up 17.63% of portfolio value over 90 days.

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

Coya Therapeutics, Common  vs.  Cardiff Oncology

Coya Therapeutics, Common

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Coya Therapeutics, Common are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Coya Therapeutics, sustained solid returns over the last few months and may actually be approaching a breakup point.

Cardiff Oncology

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cardiff Oncology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental indicators, Cardiff Oncology may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Coya Therapeutics, and Cardiff Oncology

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

The idea behind Coya Therapeutics, Common and Cardiff Oncology 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.