Correlation Between YS Biopharma and Adagene
Can any of the company-specific risk be diversified away by investing in both YS 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 YS Biopharma and Adagene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YS Biopharma Co and Adagene, you can compare the effects of market volatilities on YS 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 YS Biopharma with a short position of Adagene. Check out your portfolio center. Please also check ongoing floating volatility patterns of YS Biopharma and Adagene.
Diversification Opportunities for YS Biopharma and Adagene
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YS Biopharma and Adagene is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding YS Biopharma Co and Adagene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adagene and YS 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 YS Biopharma Co 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 YS Biopharma i.e., YS Biopharma and Adagene go up and down completely randomly.
Pair Corralation between YS Biopharma and Adagene
Allowing for the 90-day total investment horizon YS Biopharma Co is expected to generate 1.16 times more return on investment than Adagene. However, YS Biopharma is 1.16 times more volatile than Adagene. It trades about 0.2 of its potential returns per unit of risk. Adagene is currently generating about 0.1 per unit of risk. If you would invest 63.00 in YS Biopharma Co on January 26, 2024 and sell it today you would earn a total of 18.00 from holding YS Biopharma Co or generate 28.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
YS Biopharma Co vs. Adagene
Performance |
Timeline |
YS Biopharma |
Adagene |
YS Biopharma and Adagene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YS Biopharma and Adagene
The main advantage of trading using opposite YS Biopharma and Adagene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YS 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.YS Biopharma vs. Terns Pharmaceuticals | YS Biopharma vs. Amylyx Pharmaceuticals | YS Biopharma vs. Acumen Pharmaceuticals | YS Biopharma vs. Inozyme PharmaInc |
Adagene vs. Terns Pharmaceuticals | Adagene vs. Amylyx Pharmaceuticals | Adagene vs. Acumen Pharmaceuticals | Adagene vs. Inozyme PharmaInc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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