Correlation Between Cybin and ATAI Life
Can any of the company-specific risk be diversified away by investing in both Cybin and ATAI Life 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 ATAI Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cybin Inc and ATAI Life Sciences, you can compare the effects of market volatilities on Cybin and ATAI Life 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 ATAI Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cybin and ATAI Life.
Diversification Opportunities for Cybin and ATAI Life
Weak diversification
The 3 months correlation between Cybin and ATAI is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cybin Inc and ATAI Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATAI Life Sciences 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 ATAI Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATAI Life Sciences has no effect on the direction of Cybin i.e., Cybin and ATAI Life go up and down completely randomly.
Pair Corralation between Cybin and ATAI Life
Given the investment horizon of 90 days Cybin Inc is expected to generate 0.99 times more return on investment than ATAI Life. However, Cybin Inc is 1.01 times less risky than ATAI Life. It trades about 0.01 of its potential returns per unit of risk. ATAI Life Sciences is currently generating about 0.0 per unit of risk. If you would invest 1,341 in Cybin Inc on August 25, 2024 and sell it today you would lose (359.00) from holding Cybin Inc or give up 26.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cybin Inc vs. ATAI Life Sciences
Performance |
| Timeline |
| Cybin Inc |
| ATAI Life Sciences |
Cybin and ATAI Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cybin and ATAI Life
The main advantage of trading using opposite Cybin and ATAI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cybin position performs unexpectedly, ATAI Life 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 ATAI Life will offset losses from the drop in ATAI Life's long position.| Cybin vs. Mind Medicine | Cybin vs. Seelos Therapeutics | Cybin vs. GH Research PLC | Cybin vs. Awakn Life Sciences |
| ATAI Life vs. Mind Medicine | ATAI Life vs. Seelos Therapeutics | ATAI Life vs. GH Research PLC | ATAI Life vs. Cybin Inc |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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