Correlation Between 3M and Phio Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both 3M and Phio 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 3M and Phio Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 3M Company and Phio Pharmaceuticals Corp, you can compare the effects of market volatilities on 3M and Phio 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 3M with a short position of Phio Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and Phio Pharmaceuticals.

Diversification Opportunities for 3M and Phio Pharmaceuticals

-0.76

Correlation Coefficient

3M  Phio Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between 3M and Phio is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and Phio Pharmaceuticals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phio Pharmaceuticals Corp and 3M 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 3M Company are associated (or correlated) with Phio Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phio Pharmaceuticals Corp has no effect on the direction of 3M i.e., 3M and Phio Pharmaceuticals go up and down completely randomly.

Pair Corralation between 3M and Phio Pharmaceuticals

Considering the 90-day investment horizon 3M Company is expected to generate 0.37 times more return on investment than Phio Pharmaceuticals. However, 3M Company is 2.71 times less risky than Phio Pharmaceuticals. It trades about 0.07 of its potential returns per unit of risk. Phio Pharmaceuticals Corp is currently generating about -0.2 per unit of risk. If you would invest  15,599  in 3M Company on September 13, 2025 and sell it today you would earn a total of  967.00  from holding 3M Company or generate 6.2% return on investment over 90 days.

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

3M Company  vs.  Phio Pharmaceuticals Corp

3M Company

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in 3M Company are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady primary indicators, 3M may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Phio Pharmaceuticals Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Phio Pharmaceuticals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with 3M and Phio Pharmaceuticals

The main advantage of trading using opposite 3M and Phio Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, Phio 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 Phio Pharmaceuticals will offset losses from the drop in Phio Pharmaceuticals' long position.

The idea behind 3M Company and Phio Pharmaceuticals 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.