Correlation Between Adamis Pharma and Journey Medical

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

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

Diversification Opportunities for Adamis Pharma and Journey Medical

0.0

Correlation Coefficient

Adamis Pharma  Journey Medical

Pay attention - limited upside

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

Pair Corralation between Adamis Pharma and Journey Medical

If you would invest  397.00  in Journey Medical Corp on December 28, 2024 and sell it today you would earn a total of  214.00  from holding Journey Medical Corp or generate 53.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Adamis Pharma  vs.  Journey Medical Corp

Adamis Pharma

Risk-Adjusted Performance

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.

Journey Medical Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Journey Medical Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Journey Medical displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Adamis Pharma and Journey Medical

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

The idea behind Adamis Pharma and Journey Medical 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.