Correlation Between Affinity Beverage and Adagene

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Can any of the company-specific risk be diversified away by investing in both Affinity Beverage and Adagene 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 Affinity Beverage and Adagene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affinity Beverage Group and Adagene, you can compare the effects of market volatilities on Affinity Beverage and Adagene 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 Affinity Beverage with a short position of Adagene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affinity Beverage and Adagene.

Diversification Opportunities for Affinity Beverage and Adagene

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Affinity Beverage and Adagene

If you would invest  214.00  in Adagene on September 4, 2025 and sell it today you would lose (15.00) from holding Adagene or give up 7.01% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.41%
ValuesDaily Returns

Affinity Beverage Group  vs.  Adagene

 Performance 
       Timeline  
Affinity Beverage 

Risk-Adjusted Performance

Weakest

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

Risk-Adjusted Performance

Weakest

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

Affinity Beverage and Adagene Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Affinity Beverage and Adagene

The main advantage of trading using opposite Affinity Beverage and Adagene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affinity Beverage position performs unexpectedly, Adagene 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 Adagene will offset losses from the drop in Adagene's long position.
The idea behind Affinity Beverage Group and Adagene 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.
Check out your portfolio center.
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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