Correlation Between Adimmune Corp and Sunmax Biotechnology
Can any of the company-specific risk be diversified away by investing in both Adimmune Corp and Sunmax Biotechnology 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 Adimmune Corp and Sunmax Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adimmune Corp and Sunmax Biotechnology Co, you can compare the effects of market volatilities on Adimmune Corp and Sunmax Biotechnology 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 Adimmune Corp with a short position of Sunmax Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adimmune Corp and Sunmax Biotechnology.
Diversification Opportunities for Adimmune Corp and Sunmax Biotechnology
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Adimmune and Sunmax is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Adimmune Corp and Sunmax Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunmax Biotechnology and Adimmune Corp 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 Adimmune Corp are associated (or correlated) with Sunmax Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunmax Biotechnology has no effect on the direction of Adimmune Corp i.e., Adimmune Corp and Sunmax Biotechnology go up and down completely randomly.
Pair Corralation between Adimmune Corp and Sunmax Biotechnology
Assuming the 90 days trading horizon Adimmune Corp is expected to generate 3.18 times more return on investment than Sunmax Biotechnology. However, Adimmune Corp is 3.18 times more volatile than Sunmax Biotechnology Co. It trades about 0.16 of its potential returns per unit of risk. Sunmax Biotechnology Co is currently generating about -0.03 per unit of risk. If you would invest 1,980 in Adimmune Corp on October 25, 2024 and sell it today you would earn a total of 245.00 from holding Adimmune Corp or generate 12.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adimmune Corp vs. Sunmax Biotechnology Co
Performance |
| Timeline |
| Adimmune Corp |
| Sunmax Biotechnology |
Adimmune Corp and Sunmax Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adimmune Corp and Sunmax Biotechnology
The main advantage of trading using opposite Adimmune Corp and Sunmax Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adimmune Corp position performs unexpectedly, Sunmax Biotechnology 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 Sunmax Biotechnology will offset losses from the drop in Sunmax Biotechnology's long position.| Adimmune Corp vs. Medigen Vaccine Biologics | Adimmune Corp vs. SCI Pharmtech | Adimmune Corp vs. Chunghwa Chemical Synthesis | Adimmune Corp vs. ScinoPharm Taiwan |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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