Correlation Between Moolec Science and C4 Therapeutics

Can any of the company-specific risk be diversified away by investing in both Moolec Science and C4 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 Moolec Science and C4 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Moolec Science SA and C4 Therapeutics, you can compare the effects of market volatilities on Moolec Science and C4 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 Moolec Science with a short position of C4 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moolec Science and C4 Therapeutics.

Diversification Opportunities for Moolec Science and C4 Therapeutics

-0.89

Correlation Coefficient

Moolec Science  C4 Therapeutics

Pay attention - limited upside

The 3 months correlation between Moolec and CCCC is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Moolec Science SA and C4 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C4 Therapeutics and Moolec Science 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 Moolec Science SA are associated (or correlated) with C4 Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C4 Therapeutics has no effect on the direction of Moolec Science i.e., Moolec Science and C4 Therapeutics go up and down completely randomly.

Pair Corralation between Moolec Science and C4 Therapeutics

Given the investment horizon of 90 days Moolec Science SA is expected to under-perform the C4 Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Moolec Science SA is 1.32 times less risky than C4 Therapeutics. The stock trades about -0.28 of its potential returns per unit of risk. The C4 Therapeutics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  158.00  in C4 Therapeutics on May 12, 2025 and sell it today you would earn a total of  92.00  from holding C4 Therapeutics or generate 58.23% return on investment over 90 days.

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

Moolec Science SA  vs.  C4 Therapeutics

Moolec Science SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Moolec Science SA 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

C4 Therapeutics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in C4 Therapeutics are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, C4 Therapeutics exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moolec Science and C4 Therapeutics

The main advantage of trading using opposite Moolec Science and C4 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moolec Science position performs unexpectedly, C4 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 C4 Therapeutics will offset losses from the drop in C4 Therapeutics' long position.

The idea behind Moolec Science SA and C4 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.