Correlation Between InMed Pharmaceuticals and Scisparc

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

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

Diversification Opportunities for InMed Pharmaceuticals and Scisparc

0.47

Correlation Coefficient

InMed Pharmaceuticals  Scisparc

Very weak diversification

The 3 months correlation between InMed and Scisparc is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding InMed Pharmaceuticals and Scisparc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scisparc and InMed Pharmaceuticals 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 InMed Pharmaceuticals are associated (or correlated) with Scisparc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scisparc has no effect on the direction of InMed Pharmaceuticals i.e., InMed Pharmaceuticals and Scisparc go up and down completely randomly.

Pair Corralation between InMed Pharmaceuticals and Scisparc

Considering the 90-day investment horizon InMed Pharmaceuticals is expected to under-perform the Scisparc. But the stock apears to be less risky and, when comparing its historical volatility, InMed Pharmaceuticals is 1.67 times less risky than Scisparc. The stock trades about -0.02 of its potential returns per unit of risk. The Scisparc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  701.00  in Scisparc on May 28, 2025 and sell it today you would lose (279.00) from holding Scisparc or give up 39.8% of portfolio value over 90 days.

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

InMed Pharmaceuticals  vs.  Scisparc

InMed Pharmaceuticals

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in InMed Pharmaceuticals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, InMed Pharmaceuticals may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Scisparc

Risk-Adjusted Performance

Weakest

Over the last 90 days Scisparc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with InMed Pharmaceuticals and Scisparc

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

The idea behind InMed Pharmaceuticals and Scisparc 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..