Correlation Between Cybin and BiOasis Technologies

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

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

Diversification Opportunities for Cybin and BiOasis Technologies

0.0

Correlation Coefficient

Cybin  BiOasis Technologies

Pay attention - limited upside

The 3 months correlation between Cybin and BiOasis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cybin Inc and biOasis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on biOasis Technologies 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 BiOasis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of biOasis Technologies has no effect on the direction of Cybin i.e., Cybin and BiOasis Technologies go up and down completely randomly.

Pair Corralation between Cybin and BiOasis Technologies

Given the investment horizon of 90 days Cybin is expected to generate 35.98 times less return on investment than BiOasis Technologies. But when comparing it to its historical volatility, Cybin Inc is 7.67 times less risky than BiOasis Technologies. It trades about 0.01 of its potential returns per unit of risk. biOasis Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  0.40  in biOasis Technologies on September 23, 2024 and sell it today you would lose (0.39) from holding biOasis Technologies or give up 97.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.22%
Values	Daily Returns

Cybin Inc  vs.  biOasis Technologies

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.

biOasis Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days biOasis Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BiOasis Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cybin and BiOasis Technologies

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

The idea behind Cybin Inc and biOasis Technologies 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.