Correlation Between CTT Pharmaceutical and Currenc Group

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

By analyzing existing cross correlation between CTT Pharmaceutical Holdings and Currenc Group Ordinary, you can compare the effects of market volatilities on CTT Pharmaceutical and Currenc Group 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 CTT Pharmaceutical with a short position of Currenc Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTT Pharmaceutical and Currenc Group.

Diversification Opportunities for CTT Pharmaceutical and Currenc Group

-0.01

Correlation Coefficient

CTT Pharmaceutical  Currenc Group

Good diversification

The 3 months correlation between CTT and Currenc is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding CTT Pharmaceutical Holdings and Currenc Group Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Currenc Group Ordinary and CTT Pharmaceutical 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 CTT Pharmaceutical Holdings are associated (or correlated) with Currenc Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Currenc Group Ordinary has no effect on the direction of CTT Pharmaceutical i.e., CTT Pharmaceutical and Currenc Group go up and down completely randomly.

Pair Corralation between CTT Pharmaceutical and Currenc Group

Given the investment horizon of 90 days CTT Pharmaceutical is expected to generate 3.54 times less return on investment than Currenc Group. In addition to that, CTT Pharmaceutical is 1.06 times more volatile than Currenc Group Ordinary. It trades about 0.05 of its total potential returns per unit of risk. Currenc Group Ordinary is currently generating about 0.17 per unit of volatility. If you would invest  64.00  in Currenc Group Ordinary on May 20, 2025 and sell it today you would earn a total of  127.00  from holding Currenc Group Ordinary or generate 198.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

CTT Pharmaceutical Holdings  vs.  Currenc Group Ordinary

CTT Pharmaceutical

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in CTT Pharmaceutical Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, CTT Pharmaceutical demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Currenc Group Ordinary

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Currenc Group Ordinary are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Currenc Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CTT Pharmaceutical and Currenc Group

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

The idea behind CTT Pharmaceutical Holdings and Currenc Group Ordinary 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.