Correlation Between MMTEC and Pasithea Therapeutics

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

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

Diversification Opportunities for MMTEC and Pasithea Therapeutics

0.62

Correlation Coefficient

MMTEC  Pasithea Therapeutics

Poor diversification

The 3 months correlation between MMTEC and Pasithea is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding MMTEC Inc and Pasithea Therapeutics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pasithea Therapeutics and MMTEC 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 MMTEC Inc are associated (or correlated) with Pasithea Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pasithea Therapeutics has no effect on the direction of MMTEC i.e., MMTEC and Pasithea Therapeutics go up and down completely randomly.

Pair Corralation between MMTEC and Pasithea Therapeutics

Considering the 90-day investment horizon MMTEC Inc is expected to generate 0.71 times more return on investment than Pasithea Therapeutics. However, MMTEC Inc is 1.4 times less risky than Pasithea Therapeutics. It trades about -0.1 of its potential returns per unit of risk. Pasithea Therapeutics Corp is currently generating about -0.18 per unit of risk. If you would invest  118.00  in MMTEC Inc on May 5, 2025 and sell it today you would lose (29.00) from holding MMTEC Inc or give up 24.58% of portfolio value over 90 days.

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

MMTEC Inc  vs.  Pasithea Therapeutics Corp

MMTEC Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days MMTEC Inc 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 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.

Pasithea Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pasithea Therapeutics Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain somewhat 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.

Pair Trading with MMTEC and Pasithea Therapeutics

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

The idea behind MMTEC Inc and Pasithea Therapeutics Corp 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.