Correlation Between Cingulate Warrants and Scilex Holding
Can any of the company-specific risk be diversified away by investing in both Cingulate Warrants and Scilex Holding 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 Cingulate Warrants and Scilex Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cingulate Warrants and Scilex Holding, you can compare the effects of market volatilities on Cingulate Warrants and Scilex Holding 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 Cingulate Warrants with a short position of Scilex Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cingulate Warrants and Scilex Holding.
Diversification Opportunities for Cingulate Warrants and Scilex Holding
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cingulate and Scilex is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate Warrants and Scilex Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scilex Holding and Cingulate Warrants 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 Cingulate Warrants are associated (or correlated) with Scilex Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scilex Holding has no effect on the direction of Cingulate Warrants i.e., Cingulate Warrants and Scilex Holding go up and down completely randomly.
Pair Corralation between Cingulate Warrants and Scilex Holding
Assuming the 90 days horizon Cingulate Warrants is expected to generate 11.9 times more return on investment than Scilex Holding. However, Cingulate Warrants is 11.9 times more volatile than Scilex Holding. It trades about 0.16 of its potential returns per unit of risk. Scilex Holding is currently generating about 0.05 per unit of risk. If you would invest 2.75 in Cingulate Warrants on September 4, 2024 and sell it today you would earn a total of 2.10 from holding Cingulate Warrants or generate 76.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.19% |
| Values | Daily Returns |
Cingulate Warrants vs. Scilex Holding
Performance |
| Timeline |
| Cingulate Warrants |
| Scilex Holding |
Cingulate Warrants and Scilex Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cingulate Warrants and Scilex Holding
The main advantage of trading using opposite Cingulate Warrants and Scilex Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate Warrants position performs unexpectedly, Scilex Holding 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 Scilex Holding will offset losses from the drop in Scilex Holding's long position.| Cingulate Warrants vs. Cingulate | Cingulate Warrants vs. Celularity | Cingulate Warrants vs. NeuroSense Therapeutics Ltd |
| Scilex Holding vs. Candel Therapeutics | Scilex Holding vs. Cingulate Warrants | Scilex Holding vs. Unicycive Therapeutics | Scilex Holding vs. Cardio Diagnostics Holdings |
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.
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