Correlation Between Indaptus Therapeutics and Adagene
Can any of the company-specific risk be diversified away by investing in both Indaptus 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 Indaptus Therapeutics and Adagene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indaptus Therapeutics and Adagene, you can compare the effects of market volatilities on Indaptus 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 Indaptus Therapeutics with a short position of Adagene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indaptus Therapeutics and Adagene.
Diversification Opportunities for Indaptus Therapeutics and Adagene
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Indaptus and Adagene is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Indaptus Therapeutics and Adagene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adagene and Indaptus 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 Indaptus 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 Indaptus Therapeutics i.e., Indaptus Therapeutics and Adagene go up and down completely randomly.
Pair Corralation between Indaptus Therapeutics and Adagene
Given the investment horizon of 90 days Indaptus Therapeutics is expected to generate 6.02 times less return on investment than Adagene. But when comparing it to its historical volatility, Indaptus Therapeutics is 1.1 times less risky than Adagene. It trades about 0.01 of its potential returns per unit of risk. Adagene is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 135.00 in Adagene on August 30, 2024 and sell it today you would earn a total of 96.00 from holding Adagene or generate 71.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indaptus Therapeutics vs. Adagene
Performance |
| Timeline |
| Indaptus Therapeutics |
| Adagene |
Indaptus Therapeutics and Adagene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indaptus Therapeutics and Adagene
The main advantage of trading using opposite Indaptus Therapeutics and Adagene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indaptus 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.| Indaptus Therapeutics vs. Rezolute | Indaptus Therapeutics vs. Tempest Therapeutics | Indaptus Therapeutics vs. Forte Biosciences | Indaptus Therapeutics vs. ABVC Biopharma |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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