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

0.08

Correlation Coefficient

Cognition Therapeutics  Greenwich Lifesciences

Significant diversification

The 3 months correlation between Cognition and Greenwich is 0.08. 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 2.78 times less return on investment than Greenwich Lifesciences. In addition to that, Cognition Therapeutics is 1.23 times more volatile than Greenwich Lifesciences. It trades about 0.12 of its total potential returns per unit of risk. Greenwich Lifesciences is currently generating about 0.4 per unit of volatility. If you would invest  823.00  in Greenwich Lifesciences on September 16, 2025 and sell it today you would earn a total of  382.00  from holding Greenwich Lifesciences or generate 46.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Cognition Therapeutics  vs.  Greenwich Lifesciences

Cognition Therapeutics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Cognition Therapeutics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Cognition Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Greenwich Lifesciences

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Greenwich Lifesciences are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Greenwich Lifesciences may actually be approaching a critical reversion point that can send shares even higher in January 2026.

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.

The idea behind Cognition Therapeutics 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.