Correlation Between Cullinan Oncology and Tourmaline Bio

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

Diversification Opportunities for Cullinan Oncology and Tourmaline Bio

-0.63

Correlation Coefficient

Cullinan Oncology  Tourmaline Bio

Excellent diversification

The 3 months correlation between Cullinan and Tourmaline is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cullinan Oncology LLC and Tourmaline Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tourmaline Bio 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 Tourmaline Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tourmaline Bio has no effect on the direction of Cullinan Oncology i.e., Cullinan Oncology and Tourmaline Bio go up and down completely randomly.

Pair Corralation between Cullinan Oncology and Tourmaline Bio

Given the investment horizon of 90 days Cullinan Oncology is expected to generate 12.08 times less return on investment than Tourmaline Bio. But when comparing it to its historical volatility, Cullinan Oncology LLC is 1.75 times less risky than Tourmaline Bio. It trades about 0.03 of its potential returns per unit of risk. Tourmaline Bio is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  1,894  in Tourmaline Bio on July 23, 2025 and sell it today you would earn a total of  2,899  from holding Tourmaline Bio or generate 153.06% return on investment over 90 days.

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

Cullinan Oncology LLC  vs.  Tourmaline Bio

Cullinan Oncology LLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cullinan Oncology LLC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting technical and fundamental indicators, Cullinan Oncology may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Tourmaline Bio

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tourmaline Bio are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite weak primary indicators, Tourmaline Bio disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cullinan Oncology and Tourmaline Bio

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

The idea behind Cullinan Oncology LLC and Tourmaline Bio 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.