Correlation Between SFL and Adynxx
Can any of the company-specific risk be diversified away by investing in both SFL and Adynxx 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 SFL and Adynxx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SFL Corporation and Adynxx Inc, you can compare the effects of market volatilities on SFL and Adynxx 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 SFL with a short position of Adynxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFL and Adynxx.
Diversification Opportunities for SFL and Adynxx
Modest diversification
The 3 months correlation between SFL and Adynxx is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SFL Corp. and Adynxx Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adynxx Inc and SFL 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 SFL Corporation are associated (or correlated) with Adynxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adynxx Inc has no effect on the direction of SFL i.e., SFL and Adynxx go up and down completely randomly.
Pair Corralation between SFL and Adynxx
If you would invest 0.01 in Adynxx Inc on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Adynxx Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
SFL Corp. vs. Adynxx Inc
Performance |
| Timeline |
| SFL Corporation |
| Adynxx Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SFL and Adynxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SFL and Adynxx
The main advantage of trading using opposite SFL and Adynxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFL position performs unexpectedly, Adynxx 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 Adynxx will offset losses from the drop in Adynxx's long position.The idea behind SFL Corporation and Adynxx Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Adynxx vs. SFL Corporation | Adynxx vs. Enersys | Adynxx vs. Eldorado Gold Corp | Adynxx vs. Jacobs Solutions |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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