Correlation Between Cingulate and CASI Pharmaceuticals

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

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

Diversification Opportunities for Cingulate and CASI Pharmaceuticals

0.58

Correlation Coefficient

Cingulate  CASI Pharmaceuticals

Very weak diversification

The 3 months correlation between Cingulate and CASI is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate and CASI Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CASI Pharmaceuticals and Cingulate 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 Cingulate are associated (or correlated) with CASI Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CASI Pharmaceuticals has no effect on the direction of Cingulate i.e., Cingulate and CASI Pharmaceuticals go up and down completely randomly.

Pair Corralation between Cingulate and CASI Pharmaceuticals

Given the investment horizon of 90 days Cingulate is expected to generate 0.66 times more return on investment than CASI Pharmaceuticals. However, Cingulate is 1.51 times less risky than CASI Pharmaceuticals. It trades about -0.06 of its potential returns per unit of risk. CASI Pharmaceuticals is currently generating about -0.15 per unit of risk. If you would invest  430.00  in Cingulate on August 26, 2025 and sell it today you would lose (77.00) from holding Cingulate or give up 17.91% of portfolio value over 90 days.

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

Cingulate  vs.  CASI Pharmaceuticals

Cingulate

Risk-Adjusted Performance

Weakest

Over the last 90 days Cingulate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

CASI Pharmaceuticals

Risk-Adjusted Performance

Weakest

Over the last 90 days CASI Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Cingulate and CASI Pharmaceuticals

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

The idea behind Cingulate and CASI Pharmaceuticals 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 Commodity Directory module to find actively traded commodities issued by global exchanges.