Correlation Between Adagene and Benitec Biopharma
Can any of the company-specific risk be diversified away by investing in both Adagene and Benitec Biopharma 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 Adagene and Benitec Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adagene and Benitec Biopharma Ltd, you can compare the effects of market volatilities on Adagene and Benitec Biopharma 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 Adagene with a short position of Benitec Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adagene and Benitec Biopharma.
Diversification Opportunities for Adagene and Benitec Biopharma
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Adagene and Benitec is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Adagene and Benitec Biopharma Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benitec Biopharma and Adagene 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 Adagene are associated (or correlated) with Benitec Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benitec Biopharma has no effect on the direction of Adagene i.e., Adagene and Benitec Biopharma go up and down completely randomly.
Pair Corralation between Adagene and Benitec Biopharma
Given the investment horizon of 90 days Adagene is expected to under-perform the Benitec Biopharma. In addition to that, Adagene is 1.41 times more volatile than Benitec Biopharma Ltd. It trades about -0.21 of its total potential returns per unit of risk. Benitec Biopharma Ltd is currently generating about -0.03 per unit of volatility. If you would invest 1,093 in Benitec Biopharma Ltd on August 25, 2024 and sell it today you would lose (44.00) from holding Benitec Biopharma Ltd or give up 4.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adagene vs. Benitec Biopharma Ltd
Performance |
| Timeline |
| Adagene |
| Benitec Biopharma |
Adagene and Benitec Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adagene and Benitec Biopharma
The main advantage of trading using opposite Adagene and Benitec Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adagene position performs unexpectedly, Benitec Biopharma 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 Benitec Biopharma will offset losses from the drop in Benitec Biopharma's long position.| Adagene vs. Aerovate Therapeutics | Adagene vs. Acrivon Therapeutics, Common | Adagene vs. Rezolute | Adagene vs. AN2 Therapeutics |
| Benitec Biopharma vs. Bio Path Holdings | Benitec Biopharma vs. Capricor Therapeutics | Benitec Biopharma vs. NextCure | Benitec Biopharma vs. Aileron Therapeutics |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Transaction History View history of all your transactions and understand their impact on performance |