Correlation Between Identillect Technologies and Cybin

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

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

Diversification Opportunities for Identillect Technologies and Cybin

0.0

Correlation Coefficient

Identillect Technologies  Cybin

Pay attention - limited upside

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

Pair Corralation between Identillect Technologies and Cybin

Given the investment horizon of 90 days Identillect Technologies Corp is expected to generate 4.36 times more return on investment than Cybin. However, Identillect Technologies is 4.36 times more volatile than Cybin Inc. It trades about 0.1 of its potential returns per unit of risk. Cybin Inc is currently generating about 0.02 per unit of risk. If you would invest  0.50  in Identillect Technologies Corp on September 18, 2024 and sell it today you would earn a total of  0.00  from holding Identillect Technologies Corp or generate 0.0% return on investment over 90 days.

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

Identillect Technologies Corp  vs.  Cybin Inc

Identillect Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Identillect Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Identillect Technologies is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Cybin Inc

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cybin Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, Cybin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Identillect Technologies and Cybin

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

The idea behind Identillect Technologies Corp and Cybin Inc 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.