Correlation Between CB Scientific and Femasys

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

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

Diversification Opportunities for CB Scientific and Femasys

-0.26

Correlation Coefficient

CB Scientific  Femasys

Very good diversification

The 3 months correlation between CBSC and Femasys is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding CB Scientific and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys and CB Scientific 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 CB Scientific are associated (or correlated) with Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of CB Scientific i.e., CB Scientific and Femasys go up and down completely randomly.

Pair Corralation between CB Scientific and Femasys

Given the investment horizon of 90 days CB Scientific is expected to generate 1.66 times more return on investment than Femasys. However, CB Scientific is 1.66 times more volatile than Femasys. It trades about 0.03 of its potential returns per unit of risk. Femasys is currently generating about -0.03 per unit of risk. If you would invest  3.90  in CB Scientific on May 9, 2025 and sell it today you would lose (0.10) from holding CB Scientific or give up 2.56% of portfolio value over 90 days.

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

CB Scientific  vs.  Femasys

CB Scientific

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CB Scientific are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, CB Scientific exhibited solid returns over the last few months and may actually be approaching a breakup point.

Femasys

Risk-Adjusted Performance

Weakest

Over the last 90 days Femasys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with CB Scientific and Femasys

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

The idea behind CB Scientific and Femasys 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.