Correlation Between Lexaria Bioscience and Cingulate

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

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

Diversification Opportunities for Lexaria Bioscience and Cingulate

-0.28

Correlation Coefficient

Lexaria Bioscience  Cingulate

Very good diversification

The 3 months correlation between Lexaria and Cingulate is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Lexaria Bioscience Corp and Cingulate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cingulate and Lexaria Bioscience 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 Lexaria Bioscience Corp are associated (or correlated) with Cingulate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cingulate has no effect on the direction of Lexaria Bioscience i.e., Lexaria Bioscience and Cingulate go up and down completely randomly.

Pair Corralation between Lexaria Bioscience and Cingulate

Given the investment horizon of 90 days Lexaria Bioscience is expected to generate 3.77 times less return on investment than Cingulate. In addition to that, Lexaria Bioscience is 1.72 times more volatile than Cingulate. It trades about 0.01 of its total potential returns per unit of risk. Cingulate is currently generating about 0.05 per unit of volatility. If you would invest  391.00  in Cingulate on September 13, 2025 and sell it today you would earn a total of  27.00  from holding Cingulate or generate 6.91% return on investment over 90 days.

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

Lexaria Bioscience Corp  vs.  Cingulate

Lexaria Bioscience Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Lexaria Bioscience Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Lexaria Bioscience is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Cingulate

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Cingulate are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Cingulate may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Lexaria Bioscience and Cingulate

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

The idea behind Lexaria Bioscience Corp and Cingulate 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.