Correlation Between Pelthos Therapeutics and Cingulate

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

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

Diversification Opportunities for Pelthos Therapeutics and Cingulate

-0.54

Correlation Coefficient

Pelthos Therapeutics  Cingulate

Excellent diversification

The 3 months correlation between Pelthos and Cingulate is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Pelthos Therapeutics and Cingulate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cingulate and Pelthos Therapeutics 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 Pelthos Therapeutics are associated (or correlated) with Cingulate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cingulate has no effect on the direction of Pelthos Therapeutics i.e., Pelthos Therapeutics and Cingulate go up and down completely randomly.

Pair Corralation between Pelthos Therapeutics and Cingulate

Given the investment horizon of 90 days Pelthos Therapeutics is expected to generate 1.77 times more return on investment than Cingulate. However, Pelthos Therapeutics is 1.77 times more volatile than Cingulate. It trades about 0.06 of its potential returns per unit of risk. Cingulate is currently generating about -0.06 per unit of risk. If you would invest  2,273  in Pelthos Therapeutics on August 26, 2025 and sell it today you would earn a total of  267.00  from holding Pelthos Therapeutics or generate 11.75% return on investment over 90 days.

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

Pelthos Therapeutics  vs.  Cingulate

Pelthos Therapeutics

Risk-Adjusted Performance

Soft

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

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.

Pair Trading with Pelthos Therapeutics and Cingulate

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

The idea behind Pelthos Therapeutics and Cingulate 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.