Correlation Between ACRX Old and Adamis Pharma

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

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

Diversification Opportunities for ACRX Old and Adamis Pharma

0.06

Correlation Coefficient

ACRX Old  Adamis Pharma

Significant diversification

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

Pair Corralation between ACRX Old and Adamis Pharma

If you would invest  56.00  in Adamis Pharma on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Adamis Pharma or generate 0.0% return on investment over 90 days.

Time Period	1 Month [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ACRX Old  vs.  Adamis Pharma

ACRX Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ACRX Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, ACRX Old is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Adamis Pharma

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Adamis Pharma has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Adamis Pharma is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with ACRX Old and Adamis Pharma

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

The idea behind ACRX Old and Adamis Pharma 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.