Correlation Between Cyclo Therapeutics and Synaptogenix

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

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

Diversification Opportunities for Cyclo Therapeutics and Synaptogenix

-0.27

Correlation Coefficient

Cyclo Therapeutics  Synaptogenix

Very good diversification

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

Pair Corralation between Cyclo Therapeutics and Synaptogenix

Given the investment horizon of 90 days Cyclo Therapeutics is expected to generate 2.13 times more return on investment than Synaptogenix. However, Cyclo Therapeutics is 2.13 times more volatile than Synaptogenix. It trades about 0.07 of its potential returns per unit of risk. Synaptogenix is currently generating about -0.07 per unit of risk. If you would invest  60.00  in Cyclo Therapeutics on December 30, 2024 and sell it today you would earn a total of  12.00  from holding Cyclo Therapeutics or generate 20.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.16%
Values	Daily Returns

Cyclo Therapeutics  vs.  Synaptogenix

Cyclo Therapeutics

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cyclo Therapeutics are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Cyclo Therapeutics demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Synaptogenix

Risk-Adjusted Performance

Very Weak

Over the last 90 days Synaptogenix 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 basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Cyclo Therapeutics and Synaptogenix

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

The idea behind Cyclo Therapeutics and Synaptogenix 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.