Correlation Between ATyr Pharma and Cybin
Can any of the company-specific risk be diversified away by investing in both ATyr Pharma 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 ATyr Pharma and Cybin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATyr Pharma and Cybin Inc, you can compare the effects of market volatilities on ATyr Pharma 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 ATyr Pharma with a short position of Cybin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATyr Pharma and Cybin.
Diversification Opportunities for ATyr Pharma and Cybin
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATyr and Cybin is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding ATyr Pharma and Cybin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cybin Inc and ATyr Pharma 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 ATyr Pharma 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 ATyr Pharma i.e., ATyr Pharma and Cybin go up and down completely randomly.
Pair Corralation between ATyr Pharma and Cybin
Given the investment horizon of 90 days ATyr Pharma is expected to under-perform the Cybin. In addition to that, ATyr Pharma is 1.19 times more volatile than Cybin Inc. It trades about -0.04 of its total potential returns per unit of risk. Cybin Inc is currently generating about 0.02 per unit of volatility. If you would invest 1,231 in Cybin Inc on August 29, 2024 and sell it today you would lose (160.00) from holding Cybin Inc or give up 13.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.36% |
| Values | Daily Returns |
ATyr Pharma vs. Cybin Inc
Performance |
| Timeline |
| ATyr Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cybin Inc |
ATyr Pharma and Cybin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATyr Pharma and Cybin
The main advantage of trading using opposite ATyr Pharma and Cybin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATyr Pharma 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.| ATyr Pharma vs. Mereo BioPharma Group | ATyr Pharma vs. Terns Pharmaceuticals | ATyr Pharma vs. PDS Biotechnology Corp | ATyr Pharma vs. Inozyme Pharma |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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