Correlation Between YS Biopharma and Aditxt

Can any of the company-specific risk be diversified away by investing in both YS Biopharma and Aditxt 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 Aditxt 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 Aditxt Inc, you can compare the effects of market volatilities on YS Biopharma and Aditxt 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 Aditxt. Check out your portfolio center. Please also check ongoing floating volatility patterns of YS Biopharma and Aditxt.

Diversification Opportunities for YS Biopharma and Aditxt

Pay attention - limited upside

The 3 months correlation between YS Biopharma and Aditxt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YS Biopharma Co and Aditxt Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aditxt Inc 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 Aditxt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aditxt Inc has no effect on the direction of YS Biopharma i.e., YS Biopharma and Aditxt go up and down completely randomly.

Pair Corralation between YS Biopharma and Aditxt

Allowing for the 90-day total investment horizon YS Biopharma is expected to generate 16.29 times less return on investment than Aditxt. But when comparing it to its historical volatility, YS Biopharma Co is 7.27 times less risky than Aditxt. It trades about 0.07 of its potential returns per unit of risk. Aditxt Inc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,001  in Aditxt Inc on June 23, 2023 and sell it today you would earn a total of  796.00  from holding Aditxt Inc or generate 79.52% return on investment over 90 days.

YS Biopharma Co  vs.  Aditxt Inc

YS Biopharma

YS Biopharma Performance

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Over the last 90 days YS Biopharma Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in October 2023. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Aditxt Inc

Aditxt Performance

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Compared to the overall equity markets, risk-adjusted returns on investments in Aditxt Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Aditxt showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YS Biopharma and Aditxt

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

The idea behind YS Biopharma Co and Aditxt 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.

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 CEO Directory module to screen CEOs from public companies around the world.