Correlation Between Femasys and CB Scientific

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

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

Diversification Opportunities for Femasys and CB Scientific

-0.13

Correlation Coefficient

Femasys  CB Scientific

Good diversification

The 3 months correlation between Femasys and CBSC is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and CB Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CB Scientific and Femasys 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 Femasys are associated (or correlated) with CB Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CB Scientific has no effect on the direction of Femasys i.e., Femasys and CB Scientific go up and down completely randomly.

Pair Corralation between Femasys and CB Scientific

Given the investment horizon of 90 days Femasys is expected to under-perform the CB Scientific. But the stock apears to be less risky and, when comparing its historical volatility, Femasys is 1.64 times less risky than CB Scientific. The stock trades about -0.05 of its potential returns per unit of risk. The CB Scientific is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3.70  in CB Scientific on May 12, 2025 and sell it today you would earn a total of  0.20  from holding CB Scientific or generate 5.41% return on investment over 90 days.

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

Femasys  vs.  CB Scientific

Femasys

Risk-Adjusted Performance

Weakest

Over the last 90 days Femasys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

CB Scientific

Risk-Adjusted Performance

Soft

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

Pair Trading with Femasys and CB Scientific

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

The idea behind Femasys and CB Scientific 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.