Correlation Between Aileron Therapeutics and Curis
Can any of the company-specific risk be diversified away by investing in both Aileron Therapeutics and Curis 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 Aileron Therapeutics and Curis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aileron Therapeutics and Curis Inc, you can compare the effects of market volatilities on Aileron Therapeutics and Curis 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 Aileron Therapeutics with a short position of Curis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aileron Therapeutics and Curis.
Diversification Opportunities for Aileron Therapeutics and Curis
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aileron and Curis is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aileron Therapeutics and Curis Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curis Inc and Aileron 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 Aileron Therapeutics are associated (or correlated) with Curis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curis Inc has no effect on the direction of Aileron Therapeutics i.e., Aileron Therapeutics and Curis go up and down completely randomly.
Pair Corralation between Aileron Therapeutics and Curis
Given the investment horizon of 90 days Aileron Therapeutics is expected to generate 1.26 times more return on investment than Curis. However, Aileron Therapeutics is 1.26 times more volatile than Curis Inc. It trades about 0.06 of its potential returns per unit of risk. Curis Inc is currently generating about -0.06 per unit of risk. If you would invest 209.00 in Aileron Therapeutics on November 5, 2024 and sell it today you would earn a total of 2.00 from holding Aileron Therapeutics or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 26.32% |
| Values | Daily Returns |
Aileron Therapeutics vs. Curis Inc
Performance |
| Timeline |
| Aileron Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Curis Inc |
Aileron Therapeutics and Curis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aileron Therapeutics and Curis
The main advantage of trading using opposite Aileron Therapeutics and Curis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aileron Therapeutics position performs unexpectedly, Curis 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 Curis will offset losses from the drop in Curis' long position.| Aileron Therapeutics vs. Bio Path Holdings | Aileron Therapeutics vs. Benitec Biopharma Ltd | Aileron Therapeutics vs. Artelo Biosciences | Aileron Therapeutics vs. Histogen |
| Curis vs. Artelo Biosciences | Curis vs. Histogen | Curis vs. X4 Pharmaceuticals | Curis vs. Mereo BioPharma Group |
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 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.
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