Correlation Between Dermata Therapeutics and Cue Biopharma

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

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

Diversification Opportunities for Dermata Therapeutics and Cue Biopharma

0.61

Correlation Coefficient

Dermata Therapeutics  Cue Biopharma

Poor diversification

The 3 months correlation between Dermata and Cue is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dermata Therapeutics and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma and Dermata Therapeutics 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 Dermata Therapeutics 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 Dermata Therapeutics i.e., Dermata Therapeutics and Cue Biopharma go up and down completely randomly.

Pair Corralation between Dermata Therapeutics and Cue Biopharma

Given the investment horizon of 90 days Dermata Therapeutics is expected to under-perform the Cue Biopharma. In addition to that, Dermata Therapeutics is 1.26 times more volatile than Cue Biopharma. It trades about -0.14 of its total potential returns per unit of risk. Cue Biopharma is currently generating about -0.12 per unit of volatility. If you would invest  76.00  in Cue Biopharma on September 10, 2025 and sell it today you would lose (27.00) from holding Cue Biopharma or give up 35.53% of portfolio value over 90 days.

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

Dermata Therapeutics  vs.  Cue Biopharma

Dermata Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Dermata Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Cue Biopharma

Risk-Adjusted Performance

Weakest

Over the last 90 days Cue Biopharma has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Dermata Therapeutics and Cue Biopharma

The main advantage of trading using opposite Dermata Therapeutics and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dermata Therapeutics 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 Dermata Therapeutics 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.