Correlation Between Cybin and Greenwich Lifesciences

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Can any of the company-specific risk be diversified away by investing in both Cybin 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 Cybin and Greenwich Lifesciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cybin Inc and Greenwich Lifesciences, you can compare the effects of market volatilities on Cybin 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 Cybin with a short position of Greenwich Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cybin and Greenwich Lifesciences.

Diversification Opportunities for Cybin and Greenwich Lifesciences

0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between Cybin and Greenwich is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cybin Inc and Greenwich Lifesciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenwich Lifesciences and Cybin 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 Cybin Inc 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 Cybin i.e., Cybin and Greenwich Lifesciences go up and down completely randomly.

Pair Corralation between Cybin and Greenwich Lifesciences

Given the investment horizon of 90 days Cybin Inc is expected to generate 1.44 times more return on investment than Greenwich Lifesciences. However, Cybin is 1.44 times more volatile than Greenwich Lifesciences. It trades about -0.04 of its potential returns per unit of risk. Greenwich Lifesciences is currently generating about -0.15 per unit of risk. If you would invest  760.00  in Cybin Inc on August 13, 2025 and sell it today you would lose (125.00) from holding Cybin Inc or give up 16.45% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Cybin Inc  vs.  Greenwich Lifesciences

 Performance 
       Timeline  
Cybin Inc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Cybin Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental drivers remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.
Greenwich Lifesciences 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Greenwich Lifesciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Cybin and Greenwich Lifesciences Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cybin and Greenwich Lifesciences

The main advantage of trading using opposite Cybin and Greenwich Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cybin 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.
The idea behind Cybin Inc and Greenwich Lifesciences 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.
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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