Correlation Between Psyence Biomedical and Scisparc

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

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

Diversification Opportunities for Psyence Biomedical and Scisparc

0.48

Correlation Coefficient

Psyence Biomedical  Scisparc

Very weak diversification

The 3 months correlation between Psyence and Scisparc is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Psyence Biomedical Ltd and Scisparc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scisparc and Psyence Biomedical 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 Psyence Biomedical Ltd 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 Psyence Biomedical i.e., Psyence Biomedical and Scisparc go up and down completely randomly.

Pair Corralation between Psyence Biomedical and Scisparc

Considering the 90-day investment horizon Psyence Biomedical Ltd is expected to under-perform the Scisparc. But the stock apears to be less risky and, when comparing its historical volatility, Psyence Biomedical Ltd is 2.15 times less risky than Scisparc. The stock trades about -0.04 of its potential returns per unit of risk. The Scisparc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  246.00  in Scisparc on August 29, 2025 and sell it today you would lose (24.00) from holding Scisparc or give up 9.76% of portfolio value over 90 days.

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

Psyence Biomedical Ltd  vs.  Scisparc

Psyence Biomedical

Risk-Adjusted Performance

Weakest

Over the last 90 days Psyence Biomedical Ltd 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 fundamental drivers remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Scisparc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Scisparc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Scisparc exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Psyence Biomedical and Scisparc

The main advantage of trading using opposite Psyence Biomedical and Scisparc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Psyence Biomedical 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 Psyence Biomedical Ltd 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.

Check out your portfolio center.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.