Correlation Between Aditxt and BeyondSpring
Can any of the company-specific risk be diversified away by investing in both Aditxt and BeyondSpring 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 BeyondSpring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aditxt Inc and BeyondSpring, you can compare the effects of market volatilities on Aditxt and BeyondSpring 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 BeyondSpring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aditxt and BeyondSpring.
Diversification Opportunities for Aditxt and BeyondSpring
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aditxt and BeyondSpring is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aditxt Inc and BeyondSpring in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeyondSpring 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 BeyondSpring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeyondSpring has no effect on the direction of Aditxt i.e., Aditxt and BeyondSpring go up and down completely randomly.
Pair Corralation between Aditxt and BeyondSpring
Given the investment horizon of 90 days Aditxt Inc is expected to under-perform the BeyondSpring. In addition to that, Aditxt is 2.19 times more volatile than BeyondSpring. It trades about -0.43 of its total potential returns per unit of risk. BeyondSpring is currently generating about 0.2 per unit of volatility. If you would invest 159.00 in BeyondSpring on November 2, 2024 and sell it today you would earn a total of 18.00 from holding BeyondSpring or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aditxt Inc vs. BeyondSpring
Performance |
| Timeline |
| Aditxt Inc |
| BeyondSpring |
Aditxt and BeyondSpring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aditxt and BeyondSpring
The main advantage of trading using opposite Aditxt and BeyondSpring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aditxt position performs unexpectedly, BeyondSpring 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 BeyondSpring will offset losses from the drop in BeyondSpring's long position.| Aditxt vs. Dermata Therapeutics | Aditxt vs. Unicycive Therapeutics | Aditxt vs. Revelation Biosciences | Aditxt vs. Palisade Bio |
| BeyondSpring vs. Surrozen | BeyondSpring vs. Armata Pharmaceuticals | BeyondSpring vs. Pasithea Therapeutics Corp | BeyondSpring vs. Aditxt Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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