Correlation Between Curis and Rein Therapeutics

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

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

Diversification Opportunities for Curis and Rein Therapeutics

0.54

Correlation Coefficient

Curis  Rein Therapeutics

Very weak diversification

The 3 months correlation between Curis and Rein is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Curis Inc and Rein Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rein Therapeutics 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 Rein Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rein Therapeutics has no effect on the direction of Curis i.e., Curis and Rein Therapeutics go up and down completely randomly.

Pair Corralation between Curis and Rein Therapeutics

Given the investment horizon of 90 days Curis Inc is expected to generate 1.06 times more return on investment than Rein Therapeutics. However, Curis is 1.06 times more volatile than Rein Therapeutics. It trades about -0.1 of its potential returns per unit of risk. Rein Therapeutics is currently generating about -0.13 per unit of risk. If you would invest  245.00  in Curis Inc on May 5, 2025 and sell it today you would lose (82.00) from holding Curis Inc or give up 33.47% of portfolio value over 90 days.

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

Curis Inc  vs.  Rein Therapeutics

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 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.

Rein Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rein Therapeutics 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 basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Curis and Rein Therapeutics

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

The idea behind Curis Inc and Rein Therapeutics 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.