Correlation Between Surrozen and Cidara Therapeutics

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

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

Diversification Opportunities for Surrozen and Cidara Therapeutics

0.41

Correlation Coefficient

Surrozen  Cidara Therapeutics

Very weak diversification

The 3 months correlation between Surrozen and Cidara is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Surrozen and Cidara Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cidara Therapeutics and Surrozen 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 Surrozen are associated (or correlated) with Cidara Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cidara Therapeutics has no effect on the direction of Surrozen i.e., Surrozen and Cidara Therapeutics go up and down completely randomly.

Pair Corralation between Surrozen and Cidara Therapeutics

Given the investment horizon of 90 days Surrozen is expected to generate 6.77 times less return on investment than Cidara Therapeutics. But when comparing it to its historical volatility, Surrozen is 3.09 times less risky than Cidara Therapeutics. It trades about 0.08 of its potential returns per unit of risk. Cidara Therapeutics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,898  in Cidara Therapeutics on May 7, 2025 and sell it today you would earn a total of  4,348  from holding Cidara Therapeutics or generate 229.08% return on investment over 90 days.

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

Surrozen  vs.  Cidara Therapeutics

Surrozen

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Surrozen are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Surrozen displayed solid returns over the last few months and may actually be approaching a breakup point.

Cidara Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cidara Therapeutics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Cidara Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Surrozen and Cidara Therapeutics

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

The idea behind Surrozen and Cidara 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.