Correlation Between Compass Pathways and Personalis

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

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

Diversification Opportunities for Compass Pathways and Personalis

0.92

Correlation Coefficient

Compass Pathways  Personalis

Almost no diversification

The 3 months correlation between Compass and Personalis is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Compass Pathways Plc and Personalis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Personalis and Compass Pathways 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 Compass Pathways Plc are associated (or correlated) with Personalis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Personalis has no effect on the direction of Compass Pathways i.e., Compass Pathways and Personalis go up and down completely randomly.

Pair Corralation between Compass Pathways and Personalis

Given the investment horizon of 90 days Compass Pathways is expected to generate 3.78 times less return on investment than Personalis. But when comparing it to its historical volatility, Compass Pathways Plc is 1.41 times less risky than Personalis. It trades about 0.04 of its potential returns per unit of risk. Personalis is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  107.00  in Personalis on August 3, 2025 and sell it today you would earn a total of  857.00  from holding Personalis or generate 800.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Compass Pathways Plc  vs.  Personalis

Compass Pathways Plc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Compass Pathways Plc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Compass Pathways unveiled solid returns over the last few months and may actually be approaching a breakup point.

Personalis

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Personalis are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Personalis disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Compass Pathways and Personalis

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

The idea behind Compass Pathways Plc and Personalis 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.