Correlation Between Cognition Therapeutics and Greenwich Lifesciences
Can any of the company-specific risk be diversified away by investing in both Cognition Therapeutics and Greenwich Lifesciences 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 Cognition Therapeutics and Greenwich Lifesciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognition Therapeutics and Greenwich Lifesciences, you can compare the effects of market volatilities on Cognition Therapeutics and Greenwich Lifesciences 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 Cognition Therapeutics with a short position of Greenwich Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognition Therapeutics and Greenwich Lifesciences.
Diversification Opportunities for Cognition Therapeutics and Greenwich Lifesciences
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cognition and Greenwich is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cognition Therapeutics and Greenwich Lifesciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenwich Lifesciences and Cognition 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 Cognition Therapeutics are associated (or correlated) with Greenwich Lifesciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenwich Lifesciences has no effect on the direction of Cognition Therapeutics i.e., Cognition Therapeutics and Greenwich Lifesciences go up and down completely randomly.
Pair Corralation between Cognition Therapeutics and Greenwich Lifesciences
Given the investment horizon of 90 days Cognition Therapeutics is expected to generate 2.93 times more return on investment than Greenwich Lifesciences. However, Cognition Therapeutics is 2.93 times more volatile than Greenwich Lifesciences. It trades about -0.01 of its potential returns per unit of risk. Greenwich Lifesciences is currently generating about -0.17 per unit of risk. If you would invest 202.00 in Cognition Therapeutics on August 20, 2025 and sell it today you would lose (50.00) from holding Cognition Therapeutics or give up 24.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cognition Therapeutics vs. Greenwich Lifesciences
Performance |
| Timeline |
| Cognition Therapeutics |
| Greenwich Lifesciences |
Cognition Therapeutics and Greenwich Lifesciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognition Therapeutics and Greenwich Lifesciences
The main advantage of trading using opposite Cognition Therapeutics and Greenwich Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognition Therapeutics position performs unexpectedly, Greenwich Lifesciences 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 Greenwich Lifesciences will offset losses from the drop in Greenwich Lifesciences' long position.| Cognition Therapeutics vs. Tevogen Bio Holdings | Cognition Therapeutics vs. VistaGen Therapeutics | Cognition Therapeutics vs. Surrozen | Cognition Therapeutics vs. Seer Inc |
| Greenwich Lifesciences vs. Cognition Therapeutics | Greenwich Lifesciences vs. Atossa Genetics | Greenwich Lifesciences vs. Tevogen Bio Holdings | Greenwich Lifesciences vs. Oncolytics Biotech |
Check out your portfolio center.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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