Correlation Between Champions Oncology and Cullinan Oncology

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

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

Diversification Opportunities for Champions Oncology and Cullinan Oncology

-0.43

Correlation Coefficient

Champions Oncology  Cullinan Oncology

Very good diversification

The 3 months correlation between Champions and Cullinan is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Champions Oncology 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 Champions 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 Champions Oncology 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 Champions Oncology i.e., Champions Oncology and Cullinan Oncology go up and down completely randomly.

Pair Corralation between Champions Oncology and Cullinan Oncology

Given the investment horizon of 90 days Champions Oncology is expected to generate 1.7 times more return on investment than Cullinan Oncology. However, Champions Oncology is 1.7 times more volatile than Cullinan Oncology LLC. It trades about 0.08 of its potential returns per unit of risk. Cullinan Oncology LLC is currently generating about -0.15 per unit of risk. If you would invest  811.00  in Champions Oncology on December 23, 2024 and sell it today you would earn a total of  147.00  from holding Champions Oncology or generate 18.13% return on investment over 90 days.

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

Champions Oncology  vs.  Cullinan Oncology LLC

Champions Oncology

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Champions Oncology are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental drivers, Champions Oncology reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Champions Oncology and Cullinan Oncology

The main advantage of trading using opposite Champions Oncology and Cullinan Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champions Oncology 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.

The idea behind Champions Oncology and Cullinan Oncology LLC 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 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.