Correlation Between Affimed NV and ADMA Biologics
Can any of the company-specific risk be diversified away by investing in both Affimed NV and ADMA Biologics 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 Affimed NV and ADMA Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affimed NV and ADMA Biologics, you can compare the effects of market volatilities on Affimed NV and ADMA Biologics 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 Affimed NV with a short position of ADMA Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affimed NV and ADMA Biologics.
Diversification Opportunities for Affimed NV and ADMA Biologics
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Affimed and ADMA is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Affimed NV and ADMA Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADMA Biologics and Affimed NV 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 Affimed NV are associated (or correlated) with ADMA Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADMA Biologics has no effect on the direction of Affimed NV i.e., Affimed NV and ADMA Biologics go up and down completely randomly.
Pair Corralation between Affimed NV and ADMA Biologics
Given the investment horizon of 90 days Affimed NV is expected to under-perform the ADMA Biologics. In addition to that, Affimed NV is 1.65 times more volatile than ADMA Biologics. It trades about -0.02 of its total potential returns per unit of risk. ADMA Biologics is currently generating about 0.13 per unit of volatility. If you would invest 351.00 in ADMA Biologics on August 31, 2024 and sell it today you would earn a total of 1,832 from holding ADMA Biologics or generate 521.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affimed NV vs. ADMA Biologics
Performance |
| Timeline |
| Affimed NV |
| ADMA Biologics |
Affimed NV and ADMA Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affimed NV and ADMA Biologics
The main advantage of trading using opposite Affimed NV and ADMA Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affimed NV position performs unexpectedly, ADMA Biologics 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 ADMA Biologics will offset losses from the drop in ADMA Biologics' long position.| Affimed NV vs. Pieris Pharmaceuticals | Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 Pharmaceuticals |
| ADMA Biologics vs. Atara Biotherapeutics | ADMA Biologics vs. Fate Therapeutics | ADMA Biologics vs. Sana Biotechnology | ADMA Biologics vs. Caribou Biosciences |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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