Correlation Between Aditxt and Pharmather Holdings

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

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

Diversification Opportunities for Aditxt and Pharmather Holdings

0.81

Correlation Coefficient

Aditxt  Pharmather Holdings

Very poor diversification

The 3 months correlation between Aditxt and Pharmather is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Aditxt Inc and Pharmather Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pharmather Holdings and Aditxt 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 Aditxt Inc are associated (or correlated) with Pharmather Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pharmather Holdings has no effect on the direction of Aditxt i.e., Aditxt and Pharmather Holdings go up and down completely randomly.

Pair Corralation between Aditxt and Pharmather Holdings

Given the investment horizon of 90 days Aditxt Inc is expected to under-perform the Pharmather Holdings. In addition to that, Aditxt is 2.11 times more volatile than Pharmather Holdings. It trades about -0.23 of its total potential returns per unit of risk. Pharmather Holdings is currently generating about -0.01 per unit of volatility. If you would invest  17.00  in Pharmather Holdings on December 5, 2024 and sell it today you would lose (2.00) from holding Pharmather Holdings or give up 11.76% of portfolio value over 90 days.

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

Aditxt Inc  vs.  Pharmather Holdings

Aditxt Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aditxt Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pharmather Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pharmather Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Pharmather Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Aditxt and Pharmather Holdings

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

The idea behind Aditxt Inc and Pharmather Holdings 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.