Correlation Between Nkarta and Cullinan Oncology

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

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

Diversification Opportunities for Nkarta and Cullinan Oncology

0.2

Correlation Coefficient

Nkarta  Cullinan Oncology

Modest diversification

The 3 months correlation between Nkarta and Cullinan is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Nkarta Inc 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 Nkarta 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 Nkarta Inc 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 Nkarta i.e., Nkarta and Cullinan Oncology go up and down completely randomly.

Pair Corralation between Nkarta and Cullinan Oncology

Given the investment horizon of 90 days Nkarta Inc is expected to generate 1.15 times more return on investment than Cullinan Oncology. However, Nkarta is 1.15 times more volatile than Cullinan Oncology LLC. It trades about 0.05 of its potential returns per unit of risk. Cullinan Oncology LLC is currently generating about 0.04 per unit of risk. If you would invest  195.00  in Nkarta Inc on May 8, 2025 and sell it today you would earn a total of  17.00  from holding Nkarta Inc or generate 8.72% return on investment over 90 days.

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

Nkarta Inc  vs.  Cullinan Oncology LLC

Nkarta Inc

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Nkarta Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Nkarta showed solid returns over the last few months and may actually be approaching a breakup point.

Cullinan Oncology LLC

Risk-Adjusted Performance

Soft

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 unsteady technical and fundamental indicators, Cullinan Oncology may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Nkarta and Cullinan Oncology

The main advantage of trading using opposite Nkarta and Cullinan Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nkarta 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 Nkarta Inc 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..