Correlation Between Adagene and Oxford Nanopore
Can any of the company-specific risk be diversified away by investing in both Adagene and Oxford Nanopore 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 Oxford Nanopore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adagene and Oxford Nanopore Technologies, you can compare the effects of market volatilities on Adagene and Oxford Nanopore 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 Oxford Nanopore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adagene and Oxford Nanopore.
Diversification Opportunities for Adagene and Oxford Nanopore
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Adagene and Oxford is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Adagene and Oxford Nanopore Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Nanopore Tech 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 Oxford Nanopore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Nanopore Tech has no effect on the direction of Adagene i.e., Adagene and Oxford Nanopore go up and down completely randomly.
Pair Corralation between Adagene and Oxford Nanopore
Given the investment horizon of 90 days Adagene is expected to generate 1.46 times more return on investment than Oxford Nanopore. However, Adagene is 1.46 times more volatile than Oxford Nanopore Technologies. It trades about 0.05 of its potential returns per unit of risk. Oxford Nanopore Technologies is currently generating about 0.01 per unit of risk. If you would invest 188.00 in Adagene on September 3, 2024 and sell it today you would earn a total of 46.00 from holding Adagene or generate 24.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adagene vs. Oxford Nanopore Technologies
Performance |
| Timeline |
| Adagene |
| Oxford Nanopore Tech |
Adagene and Oxford Nanopore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adagene and Oxford Nanopore
The main advantage of trading using opposite Adagene and Oxford Nanopore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adagene position performs unexpectedly, Oxford Nanopore 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 Oxford Nanopore will offset losses from the drop in Oxford Nanopore's long position.| Adagene vs. DiaMedica Therapeutics | Adagene vs. Lyra Therapeutics | Adagene vs. Centessa Pharmaceuticals PLC |
| Oxford Nanopore vs. Therapeutic Solutions International | Oxford Nanopore vs. Alpha Cognition | Oxford Nanopore vs. Vg Life Sciences | Oxford Nanopore vs. Adagene |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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