Correlation Between Curis and Benitec Biopharma
Can any of the company-specific risk be diversified away by investing in both Curis and Benitec Biopharma 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 Benitec Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curis Inc and Benitec Biopharma Ltd, you can compare the effects of market volatilities on Curis and Benitec Biopharma 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 Benitec Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curis and Benitec Biopharma.
Diversification Opportunities for Curis and Benitec Biopharma
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Curis and Benitec is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Curis Inc and Benitec Biopharma Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benitec Biopharma 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 Benitec Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benitec Biopharma has no effect on the direction of Curis i.e., Curis and Benitec Biopharma go up and down completely randomly.
Pair Corralation between Curis and Benitec Biopharma
Given the investment horizon of 90 days Curis Inc is expected to under-perform the Benitec Biopharma. In addition to that, Curis is 1.25 times more volatile than Benitec Biopharma Ltd. It trades about -0.07 of its total potential returns per unit of risk. Benitec Biopharma Ltd is currently generating about 0.11 per unit of volatility. If you would invest 976.00 in Benitec Biopharma Ltd on December 1, 2024 and sell it today you would earn a total of 295.00 from holding Benitec Biopharma Ltd or generate 30.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Curis Inc vs. Benitec Biopharma Ltd
Performance |
Timeline |
Curis Inc |
Benitec Biopharma |
Curis and Benitec Biopharma Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Curis and Benitec Biopharma
The main advantage of trading using opposite Curis and Benitec Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curis position performs unexpectedly, Benitec Biopharma 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 Benitec Biopharma will offset losses from the drop in Benitec Biopharma's long position.Curis vs. Artelo Biosciences | Curis vs. X4 Pharmaceuticals | Curis vs. Mereo BioPharma Group | Curis vs. Inozyme Pharma |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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