Correlation Between Curis and Histogen
Can any of the company-specific risk be diversified away by investing in both Curis and Histogen 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 Curis and Histogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curis Inc and Histogen, you can compare the effects of market volatilities on Curis and Histogen 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 Curis with a short position of Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curis and Histogen.
Diversification Opportunities for Curis and Histogen
Very weak diversification
The 3 months correlation between Curis and Histogen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Curis Inc and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen and Curis 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 Curis Inc are associated (or correlated) with Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of Curis i.e., Curis and Histogen go up and down completely randomly.
Pair Corralation between Curis and Histogen
Given the investment horizon of 90 days Curis Inc is expected to generate 0.19 times more return on investment than Histogen. However, Curis Inc is 5.4 times less risky than Histogen. It trades about -0.21 of its potential returns per unit of risk. Histogen is currently generating about -0.3 per unit of risk. If you would invest 492.00 in Curis Inc on August 29, 2024 and sell it today you would lose (89.00) from holding Curis Inc or give up 18.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Curis Inc vs. Histogen
Performance |
| Timeline |
| Curis Inc |
| Histogen |
Curis and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curis and Histogen
The main advantage of trading using opposite Curis and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curis position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| Curis vs. Aileron Therapeutics | Curis vs. Artelo Biosciences | Curis vs. Histogen | Curis vs. X4 Pharmaceuticals |
| Histogen vs. PayPal Holdings | Histogen vs. Nasdaq Inc | Histogen vs. Choice Hotels International | Histogen vs. Microsoft |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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