Correlation Between Braxia Scientific and Cybin

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

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

Diversification Opportunities for Braxia Scientific and Cybin

0.44

Correlation Coefficient

Braxia Scientific  Cybin

Very weak diversification

The 3 months correlation between Braxia and Cybin is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Braxia Scientific Corp and Cybin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cybin Inc and Braxia Scientific 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 Braxia Scientific Corp 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 Braxia Scientific i.e., Braxia Scientific and Cybin go up and down completely randomly.

Pair Corralation between Braxia Scientific and Cybin

Assuming the 90 days horizon Braxia Scientific Corp is expected to under-perform the Cybin. In addition to that, Braxia Scientific is 5.9 times more volatile than Cybin Inc. It trades about -0.08 of its total potential returns per unit of risk. Cybin Inc is currently generating about -0.02 per unit of volatility. If you would invest  982.00  in Cybin Inc on September 23, 2024 and sell it today you would lose (21.00) from holding Cybin Inc or give up 2.14% of portfolio value over 90 days.

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

Braxia Scientific Corp  vs.  Cybin Inc

Braxia Scientific Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Braxia Scientific Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Braxia Scientific reported solid returns over the last few months and may actually be approaching a breakup point.

Cybin Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cybin Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental drivers, Cybin may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Braxia Scientific and Cybin

The main advantage of trading using opposite Braxia Scientific and Cybin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braxia Scientific 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 Braxia Scientific Corp 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.