Correlation Between Atreca and ADC Therapeutics

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

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

Diversification Opportunities for Atreca and ADC Therapeutics

0.0

Correlation Coefficient

Atreca  ADC Therapeutics

Pay attention - limited upside

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

Pair Corralation between Atreca and ADC Therapeutics

If you would invest (100.00) in Atreca Inc on November 29, 2024 and sell it today you would earn a total of  100.00  from holding Atreca Inc or generate -100.0% return on investment over 90 days.

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

Atreca Inc  vs.  ADC Therapeutics SA

Atreca Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atreca Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Atreca is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

ADC Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days ADC Therapeutics SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Atreca and ADC Therapeutics

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

The idea behind Atreca Inc and ADC Therapeutics SA 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.