Correlation Between Cyclacel Pharmaceuticals and CTi Biopharma

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

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

Diversification Opportunities for Cyclacel Pharmaceuticals and CTi Biopharma

0.0

Correlation Coefficient

Cyclacel Pharmaceuticals  CTi Biopharma

Pay attention - limited upside

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

Pair Corralation between Cyclacel Pharmaceuticals and CTi Biopharma

If you would invest  33.00  in Cyclacel Pharmaceuticals on October 20, 2024 and sell it today you would earn a total of  3.00  from holding Cyclacel Pharmaceuticals or generate 9.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Cyclacel Pharmaceuticals  vs.  CTi Biopharma Corp

Cyclacel Pharmaceuticals

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Cyclacel Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

CTi Biopharma Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CTi Biopharma Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, CTi Biopharma is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cyclacel Pharmaceuticals and CTi Biopharma

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

The idea behind Cyclacel Pharmaceuticals and CTi Biopharma Corp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.