Correlation Between Regen BioPharma and Adagene
Can any of the company-specific risk be diversified away by investing in both Regen BioPharma 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 Regen BioPharma and Adagene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regen BioPharma and Adagene, you can compare the effects of market volatilities on Regen BioPharma 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 Regen BioPharma with a short position of Adagene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regen BioPharma and Adagene.
Diversification Opportunities for Regen BioPharma and Adagene
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Regen and Adagene is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Regen BioPharma and Adagene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adagene and Regen BioPharma 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 Regen BioPharma 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 Regen BioPharma i.e., Regen BioPharma and Adagene go up and down completely randomly.
Pair Corralation between Regen BioPharma and Adagene
Given the investment horizon of 90 days Regen BioPharma is expected to under-perform the Adagene. In addition to that, Regen BioPharma is 2.6 times more volatile than Adagene. It trades about -0.21 of its total potential returns per unit of risk. Adagene is currently generating about -0.21 per unit of volatility. If you would invest 300.00 in Adagene on September 2, 2024 and sell it today you would lose (66.00) from holding Adagene or give up 22.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Regen BioPharma vs. Adagene
Performance |
| Timeline |
| Regen BioPharma |
| Adagene |
Regen BioPharma and Adagene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regen BioPharma and Adagene
The main advantage of trading using opposite Regen BioPharma and Adagene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regen BioPharma 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.| Regen BioPharma vs. Oncology Pharma | Regen BioPharma vs. Creative Medical Technology | Regen BioPharma vs. Therasense | Regen BioPharma vs. Enzolytics |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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