Correlation Between Duolingo and Cyngn

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

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

Diversification Opportunities for Duolingo and Cyngn

-0.59

Correlation Coefficient

Duolingo  Cyngn

Excellent diversification

The 3 months correlation between Duolingo and Cyngn is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Duolingo and Cyngn Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyngn Inc and Duolingo 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 Duolingo 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 Duolingo i.e., Duolingo and Cyngn go up and down completely randomly.

Pair Corralation between Duolingo and Cyngn

Given the investment horizon of 90 days Duolingo is expected to generate 0.17 times more return on investment than Cyngn. However, Duolingo is 5.88 times less risky than Cyngn. It trades about 0.09 of its potential returns per unit of risk. Cyngn Inc is currently generating about -0.02 per unit of risk. If you would invest  18,738  in Duolingo on May 6, 2025 and sell it today you would earn a total of  15,161  from holding Duolingo or generate 80.91% return on investment over 90 days.

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

Duolingo  vs.  Cyngn Inc

Duolingo

Risk-Adjusted Performance

Very Weak

Over the last 90 days Duolingo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Cyngn Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cyngn Inc are ranked lower than 5 (%) 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 Duolingo and Cyngn

The main advantage of trading using opposite Duolingo and Cyngn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duolingo 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 Duolingo 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.