Correlation Between Cardiff Oncology and Cytodyn

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

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

Diversification Opportunities for Cardiff Oncology and Cytodyn

-0.27

Correlation Coefficient

Cardiff Oncology  Cytodyn

Very good diversification

The 3 months correlation between Cardiff and Cytodyn is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cardiff Oncology and Cytodyn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytodyn and Cardiff Oncology 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 Cardiff Oncology are associated (or correlated) with Cytodyn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytodyn has no effect on the direction of Cardiff Oncology i.e., Cardiff Oncology and Cytodyn go up and down completely randomly.

Pair Corralation between Cardiff Oncology and Cytodyn

Given the investment horizon of 90 days Cardiff Oncology is expected to generate 1.26 times more return on investment than Cytodyn. However, Cardiff Oncology is 1.26 times more volatile than Cytodyn. It trades about 0.03 of its potential returns per unit of risk. Cytodyn is currently generating about -0.11 per unit of risk. If you would invest  231.00  in Cardiff Oncology on September 9, 2024 and sell it today you would earn a total of  0.00  from holding Cardiff Oncology or generate 0.0% return on investment over 90 days.

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

Cardiff Oncology  vs.  Cytodyn

Cardiff Oncology

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cardiff Oncology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental indicators, Cardiff Oncology may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Cytodyn

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cytodyn has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental 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.

Pair Trading with Cardiff Oncology and Cytodyn

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

The idea behind Cardiff Oncology and Cytodyn 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.