Correlation Between Aditxt and ABVC Biopharma
Can any of the company-specific risk be diversified away by investing in both Aditxt and ABVC 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 Aditxt and ABVC Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aditxt Inc and ABVC Biopharma, you can compare the effects of market volatilities on Aditxt and ABVC 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 Aditxt with a short position of ABVC Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aditxt and ABVC Biopharma.
Diversification Opportunities for Aditxt and ABVC Biopharma
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aditxt and ABVC is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Aditxt Inc and ABVC Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABVC Biopharma and Aditxt 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 Aditxt Inc are associated (or correlated) with ABVC Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABVC Biopharma has no effect on the direction of Aditxt i.e., Aditxt and ABVC Biopharma go up and down completely randomly.
Pair Corralation between Aditxt and ABVC Biopharma
Given the investment horizon of 90 days Aditxt Inc is expected to under-perform the ABVC Biopharma. In addition to that, Aditxt is 1.33 times more volatile than ABVC Biopharma. It trades about -0.21 of its total potential returns per unit of risk. ABVC Biopharma is currently generating about 0.0 per unit of volatility. If you would invest 108.00 in ABVC Biopharma on August 26, 2024 and sell it today you would lose (53.00) from holding ABVC Biopharma or give up 49.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aditxt Inc vs. ABVC Biopharma
Performance |
| Timeline |
| Aditxt Inc |
| ABVC Biopharma |
Aditxt and ABVC Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aditxt and ABVC Biopharma
The main advantage of trading using opposite Aditxt and ABVC Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aditxt position performs unexpectedly, ABVC 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 ABVC Biopharma will offset losses from the drop in ABVC Biopharma's long position.| Aditxt vs. Neurobo Pharmaceuticals | Aditxt vs. Dermata Therapeutics | Aditxt vs. Unicycive Therapeutics | Aditxt vs. Revelation Biosciences |
| ABVC Biopharma vs. Indaptus Therapeutics | ABVC Biopharma vs. Pasithea Therapeutics Corp | ABVC Biopharma vs. Forte Biosciences | ABVC 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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