Correlation Between DatChat Series and Cyngn

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

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

Diversification Opportunities for DatChat Series and Cyngn

-0.19

Correlation Coefficient

DatChat Series  Cyngn

Good diversification

The 3 months correlation between DatChat and Cyngn is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding DatChat Series A and Cyngn Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyngn Inc and DatChat Series 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 DatChat Series A are associated (or correlated) with Cyngn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyngn Inc has no effect on the direction of DatChat Series i.e., DatChat Series and Cyngn go up and down completely randomly.

Pair Corralation between DatChat Series and Cyngn

Assuming the 90 days horizon DatChat Series is expected to generate 3.9 times less return on investment than Cyngn. But when comparing it to its historical volatility, DatChat Series A is 2.69 times less risky than Cyngn. It trades about 0.08 of its potential returns per unit of risk. Cyngn Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  447.00  in Cyngn Inc on April 29, 2025 and sell it today you would earn a total of  442.00  from holding Cyngn Inc or generate 98.88% return on investment over 90 days.

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

DatChat Series A  vs.  Cyngn Inc

DatChat Series A

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DatChat Series A are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, DatChat Series showed solid returns over the last few months and may actually be approaching a breakup point.

Cyngn Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cyngn Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Cyngn displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DatChat Series and Cyngn

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

The idea behind DatChat Series A and Cyngn Inc 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.