Correlation Between Technology Select and Crinetics Pharmaceuticals

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

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

Diversification Opportunities for Technology Select and Crinetics Pharmaceuticals

0.72

Correlation Coefficient

Technology Select  Crinetics Pharmaceuticals

Poor diversification

The 3 months correlation between Technology and Crinetics is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Technology Select Sector and Crinetics Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crinetics Pharmaceuticals and Technology Select 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 Technology Select Sector 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 Technology Select i.e., Technology Select and Crinetics Pharmaceuticals go up and down completely randomly.

Pair Corralation between Technology Select and Crinetics Pharmaceuticals

Considering the 90-day investment horizon Technology Select is expected to generate 5.07 times less return on investment than Crinetics Pharmaceuticals. But when comparing it to its historical volatility, Technology Select Sector is 3.6 times less risky than Crinetics Pharmaceuticals. It trades about 0.1 of its potential returns per unit of risk. Crinetics Pharmaceuticals is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  3,099  in Crinetics Pharmaceuticals on August 29, 2025 and sell it today you would earn a total of  1,372  from holding Crinetics Pharmaceuticals or generate 44.27% return on investment over 90 days.

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

Technology Select Sector  vs.  Crinetics Pharmaceuticals

Technology Select Sector

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Technology Select Sector are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, Technology Select may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Crinetics Pharmaceuticals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Crinetics Pharmaceuticals are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Crinetics Pharmaceuticals showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Technology Select and Crinetics Pharmaceuticals

The main advantage of trading using opposite Technology Select and Crinetics Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technology Select 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 Technology Select Sector 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.