Correlation Between Codiak BioSciences and Adagene
Can any of the company-specific risk be diversified away by investing in both Codiak BioSciences 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 Codiak BioSciences and Adagene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codiak BioSciences and Adagene, you can compare the effects of market volatilities on Codiak BioSciences 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 Codiak BioSciences with a short position of Adagene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codiak BioSciences and Adagene.
Diversification Opportunities for Codiak BioSciences and Adagene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Codiak and Adagene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Codiak BioSciences and Adagene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adagene and Codiak BioSciences 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 Codiak BioSciences 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 Codiak BioSciences i.e., Codiak BioSciences and Adagene go up and down completely randomly.
Pair Corralation between Codiak BioSciences and Adagene
If you would invest (100.00) in Codiak BioSciences on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Codiak BioSciences or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Codiak BioSciences vs. Adagene
Performance |
| Timeline |
| Codiak BioSciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Adagene |
Codiak BioSciences and Adagene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codiak BioSciences and Adagene
The main advantage of trading using opposite Codiak BioSciences and Adagene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codiak BioSciences 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.| Codiak BioSciences vs. Kaiser Aluminum | Codiak BioSciences vs. Olympic Steel | Codiak BioSciences vs. Titan International | Codiak BioSciences vs. Sanyo Special Steel |
| Adagene vs. Tff Pharmaceuticals | Adagene vs. Eliem Therapeutics | Adagene vs. Inhibrx | Adagene vs. Enliven 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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