Correlation Between Curis and Predictive Oncology

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

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

Diversification Opportunities for Curis and Predictive Oncology

0.62

Correlation Coefficient

Curis  Predictive Oncology

Poor diversification

The 3 months correlation between Curis and Predictive is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Curis Inc and Predictive Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Predictive Oncology 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 Predictive Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Predictive Oncology has no effect on the direction of Curis i.e., Curis and Predictive Oncology go up and down completely randomly.

Pair Corralation between Curis and Predictive Oncology

Given the investment horizon of 90 days Curis Inc is expected to under-perform the Predictive Oncology. In addition to that, Curis is 1.3 times more volatile than Predictive Oncology. It trades about -0.05 of its total potential returns per unit of risk. Predictive Oncology is currently generating about -0.02 per unit of volatility. If you would invest  98.00  in Predictive Oncology on May 22, 2025 and sell it today you would lose (8.00) from holding Predictive Oncology or give up 8.16% of portfolio value over 90 days.

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

Curis Inc  vs.  Predictive Oncology

Curis Inc

Risk-Adjusted Performance

Weakest

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

Predictive Oncology

Risk-Adjusted Performance

Weakest

Over the last 90 days Predictive Oncology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Predictive Oncology is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Curis and Predictive Oncology

The main advantage of trading using opposite Curis and Predictive Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curis position performs unexpectedly, Predictive Oncology 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 Predictive Oncology will offset losses from the drop in Predictive Oncology's long position.

The idea behind Curis Inc and Predictive Oncology 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.