Correlation Between Altamira Therapeutics and Curis

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

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

Diversification Opportunities for Altamira Therapeutics and Curis

0.72

Correlation Coefficient

Altamira Therapeutics  Curis

Poor diversification

The 3 months correlation between Altamira and Curis is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Altamira Therapeutics and Curis Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curis Inc and Altamira 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 Altamira 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 Altamira Therapeutics i.e., Altamira Therapeutics and Curis go up and down completely randomly.

Pair Corralation between Altamira Therapeutics and Curis

Given the investment horizon of 90 days Altamira Therapeutics is expected to under-perform the Curis. In addition to that, Altamira Therapeutics is 1.34 times more volatile than Curis Inc. It trades about -0.21 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  526.00  in Curis Inc on August 31, 2024 and sell it today you would lose (87.00) from holding Curis Inc or give up 16.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Altamira Therapeutics  vs.  Curis Inc

Altamira Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Altamira Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Curis Inc

Risk-Adjusted Performance

0 of 100

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 December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Altamira Therapeutics and Curis

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

The idea behind Altamira Therapeutics 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.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.