Correlation Between Adamis Pharma and Athenex
Can any of the company-specific risk be diversified away by investing in both Adamis Pharma and Athenex 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 Adamis Pharma and Athenex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adamis Pharma and Athenex, you can compare the effects of market volatilities on Adamis Pharma and Athenex 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 Adamis Pharma with a short position of Athenex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adamis Pharma and Athenex.
Diversification Opportunities for Adamis Pharma and Athenex
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Adamis and Athenex is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Adamis Pharma and Athenex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athenex and Adamis Pharma 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 Adamis Pharma are associated (or correlated) with Athenex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athenex has no effect on the direction of Adamis Pharma i.e., Adamis Pharma and Athenex go up and down completely randomly.
Pair Corralation between Adamis Pharma and Athenex
Given the investment horizon of 90 days Adamis Pharma is expected to generate 0.26 times more return on investment than Athenex. However, Adamis Pharma is 3.87 times less risky than Athenex. It trades about -0.05 of its potential returns per unit of risk. Athenex is currently generating about -0.11 per unit of risk. If you would invest 204.00 in Adamis Pharma on August 31, 2024 and sell it today you would lose (30.00) from holding Adamis Pharma or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adamis Pharma vs. Athenex
Performance |
| Timeline |
| Adamis Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Athenex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Adamis Pharma and Athenex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adamis Pharma and Athenex
The main advantage of trading using opposite Adamis Pharma and Athenex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adamis Pharma position performs unexpectedly, Athenex 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 Athenex will offset losses from the drop in Athenex's long position.| Adamis Pharma vs. Lifecore Biomedical | Adamis Pharma vs. Shuttle Pharmaceuticals | Adamis Pharma vs. Organogenesis Holdings | Adamis Pharma vs. Catalent |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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