Correlation Between Scisparc and Cue Biopharma

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

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

Diversification Opportunities for Scisparc and Cue Biopharma

0.71

Correlation Coefficient

Scisparc  Cue Biopharma

Poor diversification

The 3 months correlation between Scisparc and Cue is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Scisparc and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma and Scisparc 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 Scisparc are associated (or correlated) with Cue Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Biopharma has no effect on the direction of Scisparc i.e., Scisparc and Cue Biopharma go up and down completely randomly.

Pair Corralation between Scisparc and Cue Biopharma

Given the investment horizon of 90 days Scisparc is expected to generate 2.32 times more return on investment than Cue Biopharma. However, Scisparc is 2.32 times more volatile than Cue Biopharma. It trades about 0.02 of its potential returns per unit of risk. Cue Biopharma is currently generating about 0.03 per unit of risk. If you would invest  47.00  in Scisparc on December 28, 2024 and sell it today you would lose (16.00) from holding Scisparc or give up 34.04% of portfolio value over 90 days.

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

Scisparc  vs.  Cue Biopharma

Scisparc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Scisparc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Scisparc exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cue Biopharma

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cue Biopharma are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Cue Biopharma may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Scisparc and Cue Biopharma

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

The idea behind Scisparc and Cue Biopharma 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.