Correlation Between Excelsior Medical and Adimmune Corp

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

By analyzing existing cross correlation between Excelsior Medical Co and Adimmune Corp, you can compare the effects of market volatilities on Excelsior Medical and Adimmune Corp 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 Excelsior Medical with a short position of Adimmune Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Medical and Adimmune Corp.

Diversification Opportunities for Excelsior Medical and Adimmune Corp

0.41

Correlation Coefficient

Excelsior Medical  Adimmune Corp

Very weak diversification

The 3 months correlation between Excelsior and Adimmune is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Medical Co and Adimmune Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adimmune Corp and Excelsior Medical 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 Excelsior Medical Co are associated (or correlated) with Adimmune Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adimmune Corp has no effect on the direction of Excelsior Medical i.e., Excelsior Medical and Adimmune Corp go up and down completely randomly.

Pair Corralation between Excelsior Medical and Adimmune Corp

Assuming the 90 days trading horizon Excelsior Medical Co is expected to generate 0.12 times more return on investment than Adimmune Corp. However, Excelsior Medical Co is 8.37 times less risky than Adimmune Corp. It trades about -0.09 of its potential returns per unit of risk. Adimmune Corp is currently generating about -0.08 per unit of risk. If you would invest  8,780  in Excelsior Medical Co on October 20, 2024 and sell it today you would lose (170.00) from holding Excelsior Medical Co or give up 1.94% of portfolio value over 90 days.

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

Excelsior Medical Co  vs.  Adimmune Corp

Excelsior Medical

Risk-Adjusted Performance

0 of 100

Very Weak

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

Adimmune Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Adimmune Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Excelsior Medical and Adimmune Corp

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

The idea behind Excelsior Medical Co and Adimmune Corp 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.