Correlation Between Addex Therapeutics and Adecco Group
Can any of the company-specific risk be diversified away by investing in both Addex Therapeutics and Adecco Group 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 Addex Therapeutics and Adecco Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addex Therapeutics and Adecco Group AG, you can compare the effects of market volatilities on Addex Therapeutics and Adecco Group 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 Addex Therapeutics with a short position of Adecco Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addex Therapeutics and Adecco Group.
Diversification Opportunities for Addex Therapeutics and Adecco Group
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Addex and Adecco is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Addex Therapeutics and Adecco Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adecco Group AG and Addex 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 Addex Therapeutics are associated (or correlated) with Adecco Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adecco Group AG has no effect on the direction of Addex Therapeutics i.e., Addex Therapeutics and Adecco Group go up and down completely randomly.
Pair Corralation between Addex Therapeutics and Adecco Group
If you would invest (100.00) in Addex Therapeutics on November 3, 2024 and sell it today you would earn a total of 100.00 from holding Addex Therapeutics or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Addex Therapeutics vs. Adecco Group AG
Performance |
| Timeline |
| Addex Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Adecco Group AG |
Addex Therapeutics and Adecco Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addex Therapeutics and Adecco Group
The main advantage of trading using opposite Addex Therapeutics and Adecco Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addex Therapeutics position performs unexpectedly, Adecco Group 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 Adecco Group will offset losses from the drop in Adecco Group's long position.| Addex Therapeutics vs. Santhera Pharmaceuticals Holding | Addex Therapeutics vs. Newron Pharmaceuticals SpA | Addex Therapeutics vs. Basilea Pharmaceutica AG | Addex Therapeutics vs. Evolva Holding SA |
| Adecco Group vs. Swisscom AG | Adecco Group vs. Swiss Life Holding | Adecco Group vs. Swiss Re AG | Adecco Group vs. ABB |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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