Correlation Between Adaptimmune Therapeutics and Mink Therapeutics

Can any of the company-specific risk be diversified away by investing in both Adaptimmune Therapeutics and Mink Therapeutics 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 Adaptimmune Therapeutics and Mink Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Adaptimmune Therapeutics Plc and Mink Therapeutics, you can compare the effects of market volatilities on Adaptimmune Therapeutics and Mink Therapeutics 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 Adaptimmune Therapeutics with a short position of Mink Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaptimmune Therapeutics and Mink Therapeutics.

Diversification Opportunities for Adaptimmune Therapeutics and Mink Therapeutics

0.06

Correlation Coefficient

Adaptimmune Therapeutics  Mink Therapeutics

Significant diversification

The 3 months correlation between Adaptimmune and Mink is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Adaptimmune Therapeutics Plc and Mink Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mink Therapeutics and Adaptimmune 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 Adaptimmune Therapeutics Plc are associated (or correlated) with Mink Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mink Therapeutics has no effect on the direction of Adaptimmune Therapeutics i.e., Adaptimmune Therapeutics and Mink Therapeutics go up and down completely randomly.

Pair Corralation between Adaptimmune Therapeutics and Mink Therapeutics

Given the investment horizon of 90 days Adaptimmune Therapeutics Plc is expected to generate 1.06 times more return on investment than Mink Therapeutics. However, Adaptimmune Therapeutics is 1.06 times more volatile than Mink Therapeutics. It trades about 0.19 of its potential returns per unit of risk. Mink Therapeutics is currently generating about 0.16 per unit of risk. If you would invest  103.00  in Adaptimmune Therapeutics Plc on February 16, 2024 and sell it today you would earn a total of  21.00  from holding Adaptimmune Therapeutics Plc or generate 20.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Adaptimmune Therapeutics Plc  vs.  Mink Therapeutics

Adaptimmune Therapeutics

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Adaptimmune Therapeutics Plc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Adaptimmune Therapeutics may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Mink Therapeutics

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mink Therapeutics are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal forward-looking signals, Mink Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Adaptimmune Therapeutics and Mink Therapeutics

The main advantage of trading using opposite Adaptimmune Therapeutics and Mink Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaptimmune Therapeutics position performs unexpectedly, Mink Therapeutics 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 Mink Therapeutics will offset losses from the drop in Mink Therapeutics' long position.

The idea behind Adaptimmune Therapeutics Plc and Mink Therapeutics 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.