Correlation Between Histogen and Curis
Can any of the company-specific risk be diversified away by investing in both Histogen 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 Histogen and Curis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Histogen and Curis Inc, you can compare the effects of market volatilities on Histogen 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 Histogen with a short position of Curis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Histogen and Curis.
Diversification Opportunities for Histogen and Curis
Poor diversification
The 3 months correlation between Histogen and Curis is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Histogen and Curis Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curis Inc and Histogen 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 Histogen 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 Histogen i.e., Histogen and Curis go up and down completely randomly.
Pair Corralation between Histogen and Curis
Given the investment horizon of 90 days Histogen is expected to generate 1.04 times more return on investment than Curis. However, Histogen is 1.04 times more volatile than Curis Inc. It trades about 0.13 of its potential returns per unit of risk. Curis Inc is currently generating about -0.06 per unit of risk. If you would invest 2.50 in Histogen on November 5, 2024 and sell it today you would earn a total of 0.20 from holding Histogen or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Histogen vs. Curis Inc
Performance |
| Timeline |
| Histogen |
| Curis Inc |
Histogen and Curis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Histogen and Curis
The main advantage of trading using opposite Histogen and Curis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Histogen 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.| Histogen vs. Virax Biolabs Group | Histogen vs. Artelo Biosciences | Histogen vs. Curis Inc | Histogen vs. SAB Biotherapeutics |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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