Correlation Between MTY Food and Cybin
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
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 94.74% |
Values | Daily Returns |
MTY Food Group vs. Cybin Inc
Performance |
Timeline |
MTY Food Group |
Cybin Inc |
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.MTY Food vs. Restaurant Brands International | MTY Food vs. Enghouse Systems | MTY Food vs. Metro Inc | MTY Food vs. BRP Inc |
Cybin vs. Constellation Software | Cybin vs. Lion One Metals | Cybin vs. Precious Metals And | Cybin vs. Forsys Metals Corp |
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.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |