Correlation Between Bio Path and Curis

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

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

Diversification Opportunities for Bio Path and Curis

0.37

Correlation Coefficient

Bio Path  Curis

Weak diversification

The 3 months correlation between Bio and Curis is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bio Path Holdings and Curis Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curis Inc and Bio Path 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 Bio Path Holdings 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 Bio Path i.e., Bio Path and Curis go up and down completely randomly.

Pair Corralation between Bio Path and Curis

Given the investment horizon of 90 days Bio Path Holdings is expected to under-perform the Curis. In addition to that, Bio Path is 2.54 times more volatile than Curis Inc. It trades about -0.19 of its total potential returns per unit of risk. Curis Inc is currently generating about -0.06 per unit of volatility. If you would invest  325.00  in Curis Inc on December 27, 2024 and sell it today you would lose (86.00) from holding Curis Inc or give up 26.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	63.33%
Values	Daily Returns

Bio Path Holdings  vs.  Curis Inc

Bio Path Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bio Path Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Curis Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Curis Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Bio Path and Curis

The main advantage of trading using opposite Bio Path and Curis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Path 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.

The idea behind Bio Path Holdings and Curis Inc 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.