Correlation Between Theriva Biologics and Cybin

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

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

Diversification Opportunities for Theriva Biologics and Cybin

-0.61

Correlation Coefficient

Theriva Biologics  Cybin

Excellent diversification

The 3 months correlation between Theriva and Cybin is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Theriva Biologics and Cybin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cybin Inc and Theriva Biologics 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 Theriva Biologics 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 Theriva Biologics i.e., Theriva Biologics and Cybin go up and down completely randomly.

Pair Corralation between Theriva Biologics and Cybin

Given the investment horizon of 90 days Theriva Biologics is expected to under-perform the Cybin. In addition to that, Theriva Biologics is 2.07 times more volatile than Cybin Inc. It trades about -0.14 of its total potential returns per unit of risk. Cybin Inc is currently generating about 0.1 per unit of volatility. 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	Weak
Accuracy	100.0%
Values	Daily Returns

Theriva Biologics  vs.  Cybin Inc

Theriva Biologics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Theriva Biologics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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.

Pair Trading with Theriva Biologics and Cybin

The main advantage of trading using opposite Theriva Biologics and Cybin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Theriva Biologics 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 Theriva Biologics 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.