Correlation Between Bellicum Pharmaceuticals and Adagene
Can any of the company-specific risk be diversified away by investing in both Bellicum Pharmaceuticals and Adagene 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 Bellicum Pharmaceuticals and Adagene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bellicum Pharmaceuticals and Adagene, you can compare the effects of market volatilities on Bellicum Pharmaceuticals and Adagene 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 Bellicum Pharmaceuticals with a short position of Adagene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellicum Pharmaceuticals and Adagene.
Diversification Opportunities for Bellicum Pharmaceuticals and Adagene
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bellicum and Adagene is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bellicum Pharmaceuticals and Adagene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adagene and Bellicum Pharmaceuticals 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 Bellicum Pharmaceuticals are associated (or correlated) with Adagene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adagene has no effect on the direction of Bellicum Pharmaceuticals i.e., Bellicum Pharmaceuticals and Adagene go up and down completely randomly.
Pair Corralation between Bellicum Pharmaceuticals and Adagene
If you would invest 37.00 in Bellicum Pharmaceuticals on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Bellicum Pharmaceuticals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bellicum Pharmaceuticals vs. Adagene
Performance |
| Timeline |
| Bellicum Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Adagene |
Bellicum Pharmaceuticals and Adagene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellicum Pharmaceuticals and Adagene
The main advantage of trading using opposite Bellicum Pharmaceuticals and Adagene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellicum Pharmaceuticals position performs unexpectedly, Adagene 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 Adagene will offset losses from the drop in Adagene's long position.| Bellicum Pharmaceuticals vs. Cellectis SA | Bellicum Pharmaceuticals vs. Adaptimmune Therapeutics Plc | Bellicum Pharmaceuticals vs. Atara Biotherapeutics | Bellicum Pharmaceuticals vs. Affimed NV |
| Adagene vs. Aerovate Therapeutics | Adagene vs. Acrivon Therapeutics, Common | Adagene vs. Rezolute | Adagene vs. AN2 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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