Correlation Between Cogent Biosciences and Structure Therapeutics

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

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

Diversification Opportunities for Cogent Biosciences and Structure Therapeutics

-0.9

Correlation Coefficient

Cogent Biosciences  Structure Therapeutics

Pay attention - limited upside

The 3 months correlation between Cogent and Structure is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Biosciences and Structure Therapeutics America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Structure Therapeutics and Cogent Biosciences 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 Cogent Biosciences are associated (or correlated) with Structure Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Structure Therapeutics has no effect on the direction of Cogent Biosciences i.e., Cogent Biosciences and Structure Therapeutics go up and down completely randomly.

Pair Corralation between Cogent Biosciences and Structure Therapeutics

Given the investment horizon of 90 days Cogent Biosciences is expected to generate 1.63 times more return on investment than Structure Therapeutics. However, Cogent Biosciences is 1.63 times more volatile than Structure Therapeutics American. It trades about 0.34 of its potential returns per unit of risk. Structure Therapeutics American is currently generating about -0.12 per unit of risk. If you would invest  477.00  in Cogent Biosciences on May 15, 2025 and sell it today you would earn a total of  721.00  from holding Cogent Biosciences or generate 151.15% return on investment over 90 days.

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

Cogent Biosciences  vs.  Structure Therapeutics America

Cogent Biosciences

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Cogent Biosciences are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal technical and fundamental indicators, Cogent Biosciences unveiled solid returns over the last few months and may actually be approaching a breakup point.

Structure Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Structure Therapeutics American has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Cogent Biosciences and Structure Therapeutics

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

The idea behind Cogent Biosciences and Structure Therapeutics American 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.