Correlation Between Cybin and Vaccinex

Can any of the company-specific risk be diversified away by investing in both Cybin and Vaccinex 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 Cybin and Vaccinex into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cybin Inc and Vaccinex, you can compare the effects of market volatilities on Cybin and Vaccinex 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 Cybin with a short position of Vaccinex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cybin and Vaccinex.

Diversification Opportunities for Cybin and Vaccinex

-0.36

Correlation Coefficient

Cybin  Vaccinex

Very good diversification

The 3 months correlation between Cybin and Vaccinex is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cybin Inc and Vaccinex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaccinex and Cybin 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 Cybin Inc are associated (or correlated) with Vaccinex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaccinex has no effect on the direction of Cybin i.e., Cybin and Vaccinex go up and down completely randomly.

Pair Corralation between Cybin and Vaccinex

Given the investment horizon of 90 days Cybin Inc is expected to generate 0.54 times more return on investment than Vaccinex. However, Cybin Inc is 1.86 times less risky than Vaccinex. It trades about 0.1 of its potential returns per unit of risk. Vaccinex is currently generating about -0.01 per unit of risk. If you would invest  775.00  in Cybin Inc on September 18, 2024 and sell it today you would earn a total of  216.00  from holding Cybin Inc or generate 27.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cybin Inc  vs.  Vaccinex

Cybin Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cybin Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental drivers, Cybin displayed solid returns over the last few months and may actually be approaching a breakup point.

Vaccinex

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vaccinex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Vaccinex is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cybin and Vaccinex

The main advantage of trading using opposite Cybin and Vaccinex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cybin position performs unexpectedly, Vaccinex 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 Vaccinex will offset losses from the drop in Vaccinex's long position.

The idea behind Cybin Inc and Vaccinex 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.