Correlation Between Haleon Plc and Cybin
Can any of the company-specific risk be diversified away by investing in both Haleon Plc and Cybin 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 Haleon Plc and Cybin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haleon plc and Cybin Inc, you can compare the effects of market volatilities on Haleon Plc and Cybin 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 Haleon Plc with a short position of Cybin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haleon Plc and Cybin.
Diversification Opportunities for Haleon Plc and Cybin
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Haleon and Cybin is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Haleon plc and Cybin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cybin Inc and Haleon Plc 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 Haleon plc are associated (or correlated) with Cybin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cybin Inc has no effect on the direction of Haleon Plc i.e., Haleon Plc and Cybin go up and down completely randomly.
Pair Corralation between Haleon Plc and Cybin
Considering the 90-day investment horizon Haleon plc is expected to generate 0.28 times more return on investment than Cybin. However, Haleon plc is 3.57 times less risky than Cybin. It trades about 0.07 of its potential returns per unit of risk. Cybin Inc is currently generating about -0.02 per unit of risk. If you would invest 808.00 in Haleon plc on September 2, 2024 and sell it today you would earn a total of 158.00 from holding Haleon plc or generate 19.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haleon plc vs. Cybin Inc
Performance |
| Timeline |
| Haleon plc |
| Cybin Inc |
Haleon Plc and Cybin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haleon Plc and Cybin
The main advantage of trading using opposite Haleon Plc and Cybin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haleon Plc position performs unexpectedly, Cybin 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 Cybin will offset losses from the drop in Cybin's long position.| Haleon Plc vs. Tff Pharmaceuticals | Haleon Plc vs. Eliem Therapeutics | Haleon Plc vs. Inhibrx | Haleon Plc vs. Enliven Therapeutics |
| Cybin vs. Mind Medicine | Cybin vs. Seelos Therapeutics | Cybin vs. GH Research PLC | Cybin vs. Awakn Life Sciences |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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