Correlation Between ADC Therapeutics and Imax Corp
Can any of the company-specific risk be diversified away by investing in both ADC Therapeutics and Imax Corp 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 ADC Therapeutics and Imax Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADC Therapeutics SA and Imax Corp, you can compare the effects of market volatilities on ADC Therapeutics and Imax Corp 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 ADC Therapeutics with a short position of Imax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADC Therapeutics and Imax Corp.
Diversification Opportunities for ADC Therapeutics and Imax Corp
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ADC and Imax is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding ADC Therapeutics SA and Imax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imax Corp and ADC Therapeutics 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 ADC Therapeutics SA are associated (or correlated) with Imax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imax Corp has no effect on the direction of ADC Therapeutics i.e., ADC Therapeutics and Imax Corp go up and down completely randomly.
Pair Corralation between ADC Therapeutics and Imax Corp
Given the investment horizon of 90 days ADC Therapeutics SA is expected to under-perform the Imax Corp. In addition to that, ADC Therapeutics is 1.83 times more volatile than Imax Corp. It trades about -0.13 of its total potential returns per unit of risk. Imax Corp is currently generating about 0.22 per unit of volatility. If you would invest 2,051 in Imax Corp on August 30, 2024 and sell it today you would earn a total of 552.00 from holding Imax Corp or generate 26.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADC Therapeutics SA vs. Imax Corp
Performance |
| Timeline |
| ADC Therapeutics |
| Imax Corp |
ADC Therapeutics and Imax Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADC Therapeutics and Imax Corp
The main advantage of trading using opposite ADC Therapeutics and Imax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADC Therapeutics position performs unexpectedly, Imax Corp 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 Imax Corp will offset losses from the drop in Imax Corp's long position.| ADC Therapeutics vs. Passage Bio | ADC Therapeutics vs. Black Diamond Therapeutics | ADC Therapeutics vs. Alector | ADC Therapeutics vs. Century Therapeutics |
| Imax Corp vs. Liberty Media | Imax Corp vs. Atlanta Braves Holdings, | Imax Corp vs. News Corp B | Imax Corp vs. News Corp A |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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