Correlation Between Fennec Pharmaceuticals and Cingulate
Can any of the company-specific risk be diversified away by investing in both Fennec Pharmaceuticals and Cingulate 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 Fennec Pharmaceuticals and Cingulate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fennec Pharmaceuticals and Cingulate, you can compare the effects of market volatilities on Fennec Pharmaceuticals and Cingulate 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 Fennec Pharmaceuticals with a short position of Cingulate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fennec Pharmaceuticals and Cingulate.
Diversification Opportunities for Fennec Pharmaceuticals and Cingulate
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fennec and Cingulate is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Fennec Pharmaceuticals and Cingulate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cingulate and Fennec Pharmaceuticals 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 Fennec Pharmaceuticals are associated (or correlated) with Cingulate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cingulate has no effect on the direction of Fennec Pharmaceuticals i.e., Fennec Pharmaceuticals and Cingulate go up and down completely randomly.
Pair Corralation between Fennec Pharmaceuticals and Cingulate
Given the investment horizon of 90 days Fennec Pharmaceuticals is expected to under-perform the Cingulate. But the stock apears to be less risky and, when comparing its historical volatility, Fennec Pharmaceuticals is 5.49 times less risky than Cingulate. The stock trades about -0.01 of its potential returns per unit of risk. The Cingulate is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 23,280 in Cingulate on August 30, 2024 and sell it today you would lose (22,860) from holding Cingulate or give up 98.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fennec Pharmaceuticals vs. Cingulate
Performance |
| Timeline |
| Fennec Pharmaceuticals |
| Cingulate |
Fennec Pharmaceuticals and Cingulate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fennec Pharmaceuticals and Cingulate
The main advantage of trading using opposite Fennec Pharmaceuticals and Cingulate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fennec Pharmaceuticals position performs unexpectedly, Cingulate 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 Cingulate will offset losses from the drop in Cingulate's long position.| Fennec Pharmaceuticals vs. Molecular Partners AG | Fennec Pharmaceuticals vs. MediciNova | Fennec Pharmaceuticals vs. Anebulo Pharmaceuticals | Fennec Pharmaceuticals vs. Champions Oncology |
| Cingulate vs. SAB Biotherapeutics | Cingulate vs. Senti Biosciences | Cingulate vs. Aerovate Therapeutics | Cingulate vs. Adagene |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |