Correlation Between MTY Food and Cybin

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Can any of the company-specific risk be diversified away by investing in both MTY Food 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 MTY Food and Cybin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MTY Food Group and Cybin Inc, you can compare the effects of market volatilities on MTY Food 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 MTY Food with a short position of Cybin. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTY Food and Cybin.

Diversification Opportunities for MTY Food and Cybin

0.19
  Correlation Coefficient

Average diversification

The 3 months correlation between MTY and Cybin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding MTY Food Group and Cybin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cybin Inc and MTY Food 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 MTY Food Group 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 MTY Food i.e., MTY Food and Cybin go up and down completely randomly.

Pair Corralation between MTY Food and Cybin

Assuming the 90 days trading horizon MTY Food Group is expected to under-perform the Cybin. But the stock apears to be less risky and, when comparing its historical volatility, MTY Food Group is 2.42 times less risky than Cybin. The stock trades about -0.12 of its potential returns per unit of risk. The Cybin Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,470  in Cybin Inc on October 9, 2024 and sell it today you would lose (9.00) from holding Cybin Inc or give up 0.61% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy94.74%
ValuesDaily Returns

MTY Food Group  vs.  Cybin Inc

 Performance 
       Timeline  
MTY Food Group 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in MTY Food Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, MTY Food is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
Cybin Inc 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Cybin Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Cybin exhibited solid returns over the last few months and may actually be approaching a breakup point.

MTY Food and Cybin Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MTY Food and Cybin

The main advantage of trading using opposite MTY Food and Cybin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTY Food 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.
The idea behind MTY Food Group and Cybin Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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