Correlation Between CYCC Old and Penumbra
Can any of the company-specific risk be diversified away by investing in both CYCC Old and Penumbra 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 CYCC Old and Penumbra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CYCC Old and Penumbra, you can compare the effects of market volatilities on CYCC Old and Penumbra 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 CYCC Old with a short position of Penumbra. Check out your portfolio center. Please also check ongoing floating volatility patterns of CYCC Old and Penumbra.
Diversification Opportunities for CYCC Old and Penumbra
Very good diversification
The 3 months correlation between CYCC and Penumbra is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding CYCC Old and Penumbra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penumbra and CYCC Old 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 CYCC Old are associated (or correlated) with Penumbra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penumbra has no effect on the direction of CYCC Old i.e., CYCC Old and Penumbra go up and down completely randomly.
Pair Corralation between CYCC Old and Penumbra
Given the investment horizon of 90 days CYCC Old is expected to under-perform the Penumbra. But the stock apears to be less risky and, when comparing its historical volatility, CYCC Old is 1.03 times less risky than Penumbra. The stock trades about -0.73 of its potential returns per unit of risk. The Penumbra is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 26,950 in Penumbra on September 2, 2025 and sell it today you would earn a total of 2,342 from holding Penumbra or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 13.85% |
| Values | Daily Returns |
CYCC Old vs. Penumbra
Performance |
| Timeline |
| CYCC Old |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Penumbra |
CYCC Old and Penumbra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CYCC Old and Penumbra
The main advantage of trading using opposite CYCC Old and Penumbra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CYCC Old position performs unexpectedly, Penumbra 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 Penumbra will offset losses from the drop in Penumbra's long position.| CYCC Old vs. Darden Restaurants | CYCC Old vs. Loans4LessCom | CYCC Old vs. Net Lease Office | CYCC Old vs. China Tontine Wines |
| Penumbra vs. Avidus Management Group | Penumbra vs. Commercial Vehicle Group | Penumbra vs. Xiabuxiabu Catering Management | Penumbra vs. Strategic Management and |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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