Correlation Between Repare Therapeutics and C4 Therapeutics

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

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

Diversification Opportunities for Repare Therapeutics and C4 Therapeutics

0.71

Correlation Coefficient

Repare Therapeutics  C4 Therapeutics

Poor diversification

The 3 months correlation between Repare and CCCC is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Repare Therapeutics and C4 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C4 Therapeutics and Repare 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 Repare Therapeutics 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 Repare Therapeutics i.e., Repare Therapeutics and C4 Therapeutics go up and down completely randomly.

Pair Corralation between Repare Therapeutics and C4 Therapeutics

Given the investment horizon of 90 days Repare Therapeutics is expected to generate 2.51 times less return on investment than C4 Therapeutics. But when comparing it to its historical volatility, Repare Therapeutics is 2.09 times less risky than C4 Therapeutics. It trades about 0.12 of its potential returns per unit of risk. C4 Therapeutics is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  154.00  in C4 Therapeutics on April 25, 2025 and sell it today you would earn a total of  88.00  from holding C4 Therapeutics or generate 57.14% return on investment over 90 days.

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

Repare Therapeutics  vs.  C4 Therapeutics

Repare Therapeutics

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Repare Therapeutics are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Repare Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

C4 Therapeutics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in C4 Therapeutics are ranked lower than 11 (%) 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 Repare Therapeutics and C4 Therapeutics

The main advantage of trading using opposite Repare Therapeutics and C4 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repare Therapeutics 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 Repare Therapeutics 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.