Correlation Between Instil Bio and Cullinan Oncology

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

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

Diversification Opportunities for Instil Bio and Cullinan Oncology

0.72

Correlation Coefficient

Instil Bio  Cullinan Oncology

Poor diversification

The 3 months correlation between Instil and Cullinan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Instil Bio 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 Instil Bio 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 Instil Bio 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 Instil Bio i.e., Instil Bio and Cullinan Oncology go up and down completely randomly.

Pair Corralation between Instil Bio and Cullinan Oncology

Considering the 90-day investment horizon Instil Bio is expected to under-perform the Cullinan Oncology. In addition to that, Instil Bio is 1.99 times more volatile than Cullinan Oncology LLC. It trades about -0.22 of its total potential returns per unit of risk. Cullinan Oncology LLC is currently generating about -0.17 per unit of volatility. If you would invest  1,765  in Cullinan Oncology LLC on September 24, 2024 and sell it today you would lose (619.00) from holding Cullinan Oncology LLC or give up 35.07% of portfolio value over 90 days.

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

Instil Bio  vs.  Cullinan Oncology LLC

Instil Bio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Instil Bio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Cullinan Oncology LLC

Risk-Adjusted Performance

0 of 100

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 unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Instil Bio and Cullinan Oncology

The main advantage of trading using opposite Instil Bio and Cullinan Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Instil Bio 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 Instil Bio 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.