Correlation Between Aditxt and Hoth Therapeutics
Can any of the company-specific risk be diversified away by investing in both Aditxt and Hoth Therapeutics 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 Hoth Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aditxt Inc and Hoth Therapeutics, you can compare the effects of market volatilities on Aditxt and Hoth Therapeutics 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 Hoth Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aditxt and Hoth Therapeutics.
Diversification Opportunities for Aditxt and Hoth Therapeutics
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aditxt and Hoth is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aditxt Inc and Hoth Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoth Therapeutics 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 Hoth Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoth Therapeutics has no effect on the direction of Aditxt i.e., Aditxt and Hoth Therapeutics go up and down completely randomly.
Pair Corralation between Aditxt and Hoth Therapeutics
Given the investment horizon of 90 days Aditxt Inc is expected to under-perform the Hoth Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Aditxt Inc is 7.12 times less risky than Hoth Therapeutics. The stock trades about -0.3 of its potential returns per unit of risk. The Hoth Therapeutics is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 82.00 in Hoth Therapeutics on October 22, 2024 and sell it today you would earn a total of 68.00 from holding Hoth Therapeutics or generate 82.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aditxt Inc vs. Hoth Therapeutics
Performance |
| Timeline |
| Aditxt Inc |
| Hoth Therapeutics |
Aditxt and Hoth Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aditxt and Hoth Therapeutics
The main advantage of trading using opposite Aditxt and Hoth Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aditxt position performs unexpectedly, Hoth Therapeutics 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 Hoth Therapeutics will offset losses from the drop in Hoth Therapeutics' long position.| Aditxt vs. Dermata Therapeutics | Aditxt vs. Unicycive Therapeutics | Aditxt vs. Revelation Biosciences | Aditxt vs. Palisade Bio |
| Hoth Therapeutics vs. Avenue Therapeutics | Hoth Therapeutics vs. Revelation Biosciences | Hoth Therapeutics vs. Virax Biolabs Group | Hoth Therapeutics vs. Zura Bio Limited |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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