Correlation Between Cullinan Oncology and Inozyme Pharma

Can any of the company-specific risk be diversified away by investing in both Cullinan Oncology and Inozyme Pharma 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 Inozyme Pharma 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 Inozyme Pharma, you can compare the effects of market volatilities on Cullinan Oncology and Inozyme Pharma 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 Inozyme Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullinan Oncology and Inozyme Pharma.

Diversification Opportunities for Cullinan Oncology and Inozyme Pharma

-0.36

Correlation Coefficient

Cullinan Oncology  Inozyme Pharma

Very good diversification

The 3 months correlation between Cullinan and Inozyme is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cullinan Oncology LLC and Inozyme Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inozyme Pharma 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 Inozyme Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inozyme Pharma has no effect on the direction of Cullinan Oncology i.e., Cullinan Oncology and Inozyme Pharma go up and down completely randomly.

Pair Corralation between Cullinan Oncology and Inozyme Pharma

Given the investment horizon of 90 days Cullinan Oncology LLC is expected to under-perform the Inozyme Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Cullinan Oncology LLC is 8.68 times less risky than Inozyme Pharma. The stock trades about -0.02 of its potential returns per unit of risk. The Inozyme Pharma is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  149.00  in Inozyme Pharma on May 5, 2025 and sell it today you would earn a total of  251.00  from holding Inozyme Pharma or generate 168.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	65.08%
Values	Daily Returns

Cullinan Oncology LLC  vs.  Inozyme Pharma

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 very healthy technical and fundamental indicators, Cullinan Oncology is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Inozyme Pharma

Risk-Adjusted Performance

Good

Over the last 90 days Inozyme Pharma has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly unfluctuating basic indicators, Inozyme Pharma showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cullinan Oncology and Inozyme Pharma

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

The idea behind Cullinan Oncology LLC and Inozyme Pharma 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.