Correlation Between MAIA Biotechnology and Tango Therapeutics
Can any of the company-specific risk be diversified away by investing in both MAIA Biotechnology and Tango 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 MAIA Biotechnology and Tango Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAIA Biotechnology and Tango Therapeutics, you can compare the effects of market volatilities on MAIA Biotechnology and Tango 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 MAIA Biotechnology with a short position of Tango Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAIA Biotechnology and Tango Therapeutics.
Diversification Opportunities for MAIA Biotechnology and Tango Therapeutics
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAIA and Tango is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding MAIA Biotechnology and Tango Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tango Therapeutics and MAIA Biotechnology 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 MAIA Biotechnology are associated (or correlated) with Tango Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tango Therapeutics has no effect on the direction of MAIA Biotechnology i.e., MAIA Biotechnology and Tango Therapeutics go up and down completely randomly.
Pair Corralation between MAIA Biotechnology and Tango Therapeutics
Given the investment horizon of 90 days MAIA Biotechnology is expected to under-perform the Tango Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, MAIA Biotechnology is 1.09 times less risky than Tango Therapeutics. The stock trades about -0.14 of its potential returns per unit of risk. The Tango Therapeutics is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 675.00 in Tango Therapeutics on August 20, 2025 and sell it today you would earn a total of 125.00 from holding Tango Therapeutics or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAIA Biotechnology vs. Tango Therapeutics
Performance |
| Timeline |
| MAIA Biotechnology |
| Tango Therapeutics |
MAIA Biotechnology and Tango Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAIA Biotechnology and Tango Therapeutics
The main advantage of trading using opposite MAIA Biotechnology and Tango Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAIA Biotechnology position performs unexpectedly, Tango 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 Tango Therapeutics will offset losses from the drop in Tango Therapeutics' long position.| MAIA Biotechnology vs. Elutia Inc | MAIA Biotechnology vs. Lantern Pharma | MAIA Biotechnology vs. Bioatla | MAIA Biotechnology vs. PolyPid |
| Tango Therapeutics vs. Septerna, Common Stock | Tango Therapeutics vs. UroGen Pharma | Tango Therapeutics vs. ProKidney Corp | Tango Therapeutics vs. Eyepoint Pharmaceuticals |
Check out your portfolio center.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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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