Correlation Between Milestone Scientific and CB Scientific

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

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

Diversification Opportunities for Milestone Scientific and CB Scientific

0.29

Correlation Coefficient

Milestone Scientific  CB Scientific

Modest diversification

The 3 months correlation between Milestone and CBSC is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Milestone Scientific and CB Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CB Scientific and Milestone Scientific 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 Milestone Scientific 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 Milestone Scientific i.e., Milestone Scientific and CB Scientific go up and down completely randomly.

Pair Corralation between Milestone Scientific and CB Scientific

Given the investment horizon of 90 days Milestone Scientific is expected to under-perform the CB Scientific. But the stock apears to be less risky and, when comparing its historical volatility, Milestone Scientific is 1.26 times less risky than CB Scientific. The stock trades about -0.08 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 14, 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 Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Milestone Scientific  vs.  CB Scientific

Milestone Scientific

Risk-Adjusted Performance

Weakest

Over the last 90 days Milestone Scientific 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 comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private 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 Milestone Scientific and CB Scientific

The main advantage of trading using opposite Milestone Scientific and CB Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Milestone Scientific 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 Milestone Scientific 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.