Correlation Between ContraFect and Cns Pharmaceuticals

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

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

Diversification Opportunities for ContraFect and Cns Pharmaceuticals

0.0

Correlation Coefficient

ContraFect  Cns Pharmaceuticals

Pay attention - limited upside

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

Pair Corralation between ContraFect and Cns Pharmaceuticals

If you would invest (100.00) in ContraFect on July 2, 2025 and sell it today you would earn a total of  100.00  from holding ContraFect or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ContraFect  vs.  Cns Pharmaceuticals

ContraFect

Risk-Adjusted Performance

Weakest

Over the last 90 days ContraFect has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, ContraFect is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Cns Pharmaceuticals

Risk-Adjusted Performance

Weakest

Over the last 90 days Cns Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with ContraFect and Cns Pharmaceuticals

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

The idea behind ContraFect and Cns Pharmaceuticals 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.