Correlation Between Adynxx and ImmuCell

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

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

Diversification Opportunities for Adynxx and ImmuCell

-0.07

Correlation Coefficient

Adynxx  ImmuCell

Good diversification

The 3 months correlation between Adynxx and ImmuCell is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Adynxx Inc and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and Adynxx 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 Adynxx Inc are associated (or correlated) with ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of Adynxx i.e., Adynxx and ImmuCell go up and down completely randomly.

Pair Corralation between Adynxx and ImmuCell

If you would invest  363.00  in ImmuCell on September 12, 2024 and sell it today you would earn a total of  126.00  from holding ImmuCell or generate 34.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Adynxx Inc  vs.  ImmuCell

Adynxx Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

ImmuCell

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, ImmuCell exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Adynxx and ImmuCell

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

The idea behind Adynxx Inc and ImmuCell 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.