Correlation Between Adicet Bio and Axogen
Can any of the company-specific risk be diversified away by investing in both Adicet Bio and Axogen 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 Adicet Bio and Axogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adicet Bio and Axogen Inc, you can compare the effects of market volatilities on Adicet Bio and Axogen 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 Adicet Bio with a short position of Axogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adicet Bio and Axogen.
Diversification Opportunities for Adicet Bio and Axogen
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Adicet and Axogen is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Adicet Bio and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and Adicet Bio 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 Adicet Bio are associated (or correlated) with Axogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axogen Inc has no effect on the direction of Adicet Bio i.e., Adicet Bio and Axogen go up and down completely randomly.
Pair Corralation between Adicet Bio and Axogen
Given the investment horizon of 90 days Adicet Bio is expected to under-perform the Axogen. In addition to that, Adicet Bio is 1.06 times more volatile than Axogen Inc. It trades about -0.1 of its total potential returns per unit of risk. Axogen Inc is currently generating about 0.13 per unit of volatility. If you would invest 1,395 in Axogen Inc on November 1, 2024 and sell it today you would earn a total of 454.00 from holding Axogen Inc or generate 32.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adicet Bio vs. Axogen Inc
Performance |
| Timeline |
| Adicet Bio |
| Axogen Inc |
Adicet Bio and Axogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adicet Bio and Axogen
The main advantage of trading using opposite Adicet Bio and Axogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adicet Bio position performs unexpectedly, Axogen 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 Axogen will offset losses from the drop in Axogen's long position.| Adicet Bio vs. Humana Inc | Adicet Bio vs. Cigna Corp | Adicet Bio vs. Elevance Health | Adicet Bio vs. Centene Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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