Correlation Between Volcon and ChitogenX

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

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

Diversification Opportunities for Volcon and ChitogenX

0.06

Correlation Coefficient

Volcon  ChitogenX

Significant diversification

The 3 months correlation between Volcon and ChitogenX is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Volcon Inc and ChitogenX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChitogenX and Volcon 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 Volcon Inc are associated (or correlated) with ChitogenX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChitogenX has no effect on the direction of Volcon i.e., Volcon and ChitogenX go up and down completely randomly.

Pair Corralation between Volcon and ChitogenX

Given the investment horizon of 90 days Volcon Inc is expected to under-perform the ChitogenX. But the stock apears to be less risky and, when comparing its historical volatility, Volcon Inc is 9.82 times less risky than ChitogenX. The stock trades about -0.06 of its potential returns per unit of risk. The ChitogenX is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  0.11  in ChitogenX on August 4, 2025 and sell it today you would earn a total of  0.00  from holding ChitogenX or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	65.15%
Values	Daily Returns

Volcon Inc  vs.  ChitogenX

Volcon Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Volcon Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators 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.

ChitogenX

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ChitogenX are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ChitogenX reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Volcon and ChitogenX

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

The idea behind Volcon Inc and ChitogenX 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.