Correlation Between Wesana Health and Cybin
Can any of the company-specific risk be diversified away by investing in both Wesana Health 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 Wesana Health and Cybin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesana Health Holdings and Cybin Inc, you can compare the effects of market volatilities on Wesana Health 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 Wesana Health with a short position of Cybin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesana Health and Cybin.
Diversification Opportunities for Wesana Health and Cybin
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wesana and Cybin is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Wesana Health Holdings and Cybin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cybin Inc and Wesana Health 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 Wesana Health Holdings 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 Wesana Health i.e., Wesana Health and Cybin go up and down completely randomly.
Pair Corralation between Wesana Health and Cybin
Assuming the 90 days horizon Wesana Health Holdings is expected to generate 16.31 times more return on investment than Cybin. However, Wesana Health is 16.31 times more volatile than Cybin Inc. It trades about 0.18 of its potential returns per unit of risk. Cybin Inc is currently generating about -0.03 per unit of risk. If you would invest 0.50 in Wesana Health Holdings on October 16, 2024 and sell it today you would earn a total of 3.50 from holding Wesana Health Holdings or generate 700.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Wesana Health Holdings vs. Cybin Inc
Performance |
| Timeline |
| Wesana Health Holdings |
| Cybin Inc |
Wesana Health and Cybin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesana Health and Cybin
The main advantage of trading using opposite Wesana Health and Cybin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesana Health 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.| Wesana Health vs. Revelation Biosciences | Wesana Health vs. Awakn Life Sciences | Wesana Health vs. HAVN Life Sciences | Wesana Health vs. Silo Pharma |
| Cybin vs. Mind Medicine | Cybin vs. GH Research PLC | Cybin vs. Awakn Life Sciences | Cybin vs. ATAI 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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