Correlation Between Cybin and Questor Technology
Can any of the company-specific risk be diversified away by investing in both Cybin and Questor Technology 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 Cybin and Questor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cybin Inc and Questor Technology, you can compare the effects of market volatilities on Cybin and Questor Technology 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 Cybin with a short position of Questor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cybin and Questor Technology.
Diversification Opportunities for Cybin and Questor Technology
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cybin and Questor is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cybin Inc and Questor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Questor Technology and Cybin 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 Cybin Inc are associated (or correlated) with Questor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Questor Technology has no effect on the direction of Cybin i.e., Cybin and Questor Technology go up and down completely randomly.
Pair Corralation between Cybin and Questor Technology
Assuming the 90 days trading horizon Cybin Inc is expected to generate 1.69 times more return on investment than Questor Technology. However, Cybin is 1.69 times more volatile than Questor Technology. It trades about 0.04 of its potential returns per unit of risk. Questor Technology is currently generating about -0.45 per unit of risk. If you would invest 1,460 in Cybin Inc on August 27, 2024 and sell it today you would earn a total of 15.00 from holding Cybin Inc or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cybin Inc vs. Questor Technology
Performance |
| Timeline |
| Cybin Inc |
| Questor Technology |
Cybin and Questor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cybin and Questor Technology
The main advantage of trading using opposite Cybin and Questor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cybin position performs unexpectedly, Questor Technology 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 Questor Technology will offset losses from the drop in Questor Technology's long position.| Cybin vs. Questor Technology | Cybin vs. Caribbean Utilities | Cybin vs. Richelieu Hardware | Cybin vs. Renoworks Software |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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