Correlation Between Cyteir Therapeutics and Adagene
Can any of the company-specific risk be diversified away by investing in both Cyteir Therapeutics 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 Cyteir Therapeutics and Adagene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cyteir Therapeutics and Adagene, you can compare the effects of market volatilities on Cyteir Therapeutics 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 Cyteir Therapeutics with a short position of Adagene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cyteir Therapeutics and Adagene.
Diversification Opportunities for Cyteir Therapeutics and Adagene
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cyteir and Adagene is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cyteir Therapeutics and Adagene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adagene and Cyteir 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 Cyteir Therapeutics 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 Cyteir Therapeutics i.e., Cyteir Therapeutics and Adagene go up and down completely randomly.
Pair Corralation between Cyteir Therapeutics and Adagene
Considering the 90-day investment horizon Cyteir Therapeutics is expected to generate 1.13 times more return on investment than Adagene. However, Cyteir Therapeutics is 1.13 times more volatile than Adagene. It trades about 0.16 of its potential returns per unit of risk. Adagene is currently generating about 0.05 per unit of risk. If you would invest 207.00 in Cyteir Therapeutics on August 31, 2024 and sell it today you would earn a total of 69.00 from holding Cyteir Therapeutics or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.29% |
| Values | Daily Returns |
Cyteir Therapeutics vs. Adagene
Performance |
| Timeline |
| Cyteir Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Adagene |
Cyteir Therapeutics and Adagene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cyteir Therapeutics and Adagene
The main advantage of trading using opposite Cyteir Therapeutics and Adagene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyteir Therapeutics 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.| Cyteir Therapeutics vs. Nuvation Bio | Cyteir Therapeutics vs. Foghorn Therapeutics | Cyteir Therapeutics vs. C4 Therapeutics | Cyteir Therapeutics vs. Prelude Therapeutics |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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