Correlation Between Cyclacel Pharmaceuticals and CTT Pharmaceutical

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

By analyzing existing cross correlation between Cyclacel Pharmaceuticals and CTT Pharmaceutical Holdings, you can compare the effects of market volatilities on Cyclacel Pharmaceuticals and CTT Pharmaceutical 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 CTT Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cyclacel Pharmaceuticals and CTT Pharmaceutical.

Diversification Opportunities for Cyclacel Pharmaceuticals and CTT Pharmaceutical

0.0

Correlation Coefficient

Cyclacel Pharmaceuticals  CTT Pharmaceutical

Pay attention - limited upside

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

Pair Corralation between Cyclacel Pharmaceuticals and CTT Pharmaceutical

Given the investment horizon of 90 days Cyclacel Pharmaceuticals is expected to generate 10.78 times less return on investment than CTT Pharmaceutical. But when comparing it to its historical volatility, Cyclacel Pharmaceuticals is 3.33 times less risky than CTT Pharmaceutical. It trades about 0.02 of its potential returns per unit of risk. CTT Pharmaceutical Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  6.58  in CTT Pharmaceutical Holdings on December 20, 2024 and sell it today you would lose (1.08) from holding CTT Pharmaceutical Holdings or give up 16.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Cyclacel Pharmaceuticals  vs.  CTT Pharmaceutical Holdings

Cyclacel Pharmaceuticals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cyclacel Pharmaceuticals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Cyclacel Pharmaceuticals is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

CTT Pharmaceutical

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CTT Pharmaceutical Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, CTT Pharmaceutical demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cyclacel Pharmaceuticals and CTT Pharmaceutical

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

The idea behind Cyclacel Pharmaceuticals and CTT Pharmaceutical Holdings 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.