Correlation Between Cybin and Vaccinex
Can any of the company-specific risk be diversified away by investing in both Cybin and Vaccinex 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 Vaccinex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cybin Inc and Vaccinex, you can compare the effects of market volatilities on Cybin and Vaccinex 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 Vaccinex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cybin and Vaccinex.
Diversification Opportunities for Cybin and Vaccinex
Excellent diversification
The 3 months correlation between Cybin and Vaccinex is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Cybin Inc and Vaccinex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaccinex 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 Vaccinex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaccinex has no effect on the direction of Cybin i.e., Cybin and Vaccinex go up and down completely randomly.
Pair Corralation between Cybin and Vaccinex
Given the investment horizon of 90 days Cybin Inc is expected to generate 0.55 times more return on investment than Vaccinex. However, Cybin Inc is 1.81 times less risky than Vaccinex. It trades about 0.01 of its potential returns per unit of risk. Vaccinex is currently generating about -0.02 per unit of risk. If you would invest 1,015 in Cybin Inc on August 25, 2024 and sell it today you would lose (33.00) from holding Cybin Inc or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Cybin Inc vs. Vaccinex
Performance |
| Timeline |
| Cybin Inc |
| Vaccinex |
Cybin and Vaccinex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cybin and Vaccinex
The main advantage of trading using opposite Cybin and Vaccinex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cybin position performs unexpectedly, Vaccinex 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 Vaccinex will offset losses from the drop in Vaccinex's long position.| Cybin vs. Mind Medicine | Cybin vs. Seelos Therapeutics | Cybin vs. GH Research PLC | Cybin vs. Awakn Life Sciences |
| Vaccinex vs. Eliem Therapeutics | Vaccinex vs. HCW Biologics | Vaccinex vs. RenovoRx | Vaccinex vs. Tempest Therapeutics |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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