Correlation Between ATAI Life and Cybin
Can any of the company-specific risk be diversified away by investing in both ATAI Life and Cybin 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 ATAI Life and Cybin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATAI Life Sciences and Cybin Inc, you can compare the effects of market volatilities on ATAI Life and Cybin 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 ATAI Life with a short position of Cybin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATAI Life and Cybin.
Diversification Opportunities for ATAI Life and Cybin
Weak diversification
The 3 months correlation between ATAI and Cybin is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding ATAI Life Sciences and Cybin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cybin Inc and ATAI Life 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 ATAI Life Sciences are associated (or correlated) with Cybin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cybin Inc has no effect on the direction of ATAI Life i.e., ATAI Life and Cybin go up and down completely randomly.
Pair Corralation between ATAI Life and Cybin
Given the investment horizon of 90 days ATAI Life Sciences is expected to generate 1.13 times more return on investment than Cybin. However, ATAI Life is 1.13 times more volatile than Cybin Inc. It trades about 0.24 of its potential returns per unit of risk. Cybin Inc is currently generating about 0.03 per unit of risk. If you would invest 122.00 in ATAI Life Sciences on August 29, 2024 and sell it today you would earn a total of 47.00 from holding ATAI Life Sciences or generate 38.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATAI Life Sciences vs. Cybin Inc
Performance |
| Timeline |
| ATAI Life Sciences |
| Cybin Inc |
ATAI Life and Cybin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATAI Life and Cybin
The main advantage of trading using opposite ATAI Life and Cybin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATAI Life position performs unexpectedly, Cybin 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 Cybin will offset losses from the drop in Cybin's long position.| ATAI Life vs. Mind Medicine | ATAI Life vs. Seelos Therapeutics | ATAI Life vs. GH Research PLC | ATAI Life vs. Cybin Inc |
| Cybin vs. Mind Medicine | Cybin vs. Seelos Therapeutics | Cybin vs. GH Research PLC | Cybin vs. Awakn Life Sciences |
Check out your portfolio center.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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |