Correlation Between Structure Therapeutics and Crinetics Pharmaceuticals

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

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

Diversification Opportunities for Structure Therapeutics and Crinetics Pharmaceuticals

0.42

Correlation Coefficient

Structure Therapeutics  Crinetics Pharmaceuticals

Very weak diversification

The 3 months correlation between Structure and Crinetics is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Structure Therapeutics America and Crinetics Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crinetics Pharmaceuticals and Structure 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 Structure Therapeutics American are associated (or correlated) with Crinetics Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crinetics Pharmaceuticals has no effect on the direction of Structure Therapeutics i.e., Structure Therapeutics and Crinetics Pharmaceuticals go up and down completely randomly.

Pair Corralation between Structure Therapeutics and Crinetics Pharmaceuticals

Given the investment horizon of 90 days Structure Therapeutics American is expected to under-perform the Crinetics Pharmaceuticals. In addition to that, Structure Therapeutics is 1.14 times more volatile than Crinetics Pharmaceuticals. It trades about -0.08 of its total potential returns per unit of risk. Crinetics Pharmaceuticals is currently generating about 0.04 per unit of volatility. If you would invest  2,950  in Crinetics Pharmaceuticals on May 27, 2025 and sell it today you would earn a total of  142.00  from holding Crinetics Pharmaceuticals or generate 4.81% return on investment over 90 days.

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

Structure Therapeutics America  vs.  Crinetics Pharmaceuticals

Structure Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Structure Therapeutics American has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Crinetics Pharmaceuticals

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Crinetics Pharmaceuticals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Crinetics Pharmaceuticals may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Structure Therapeutics and Crinetics Pharmaceuticals

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

The idea behind Structure Therapeutics American and Crinetics Pharmaceuticals 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.