Correlation Between Adagene and Sutro Biopharma
Can any of the company-specific risk be diversified away by investing in both Adagene and Sutro Biopharma 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 Adagene and Sutro Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adagene and Sutro Biopharma, you can compare the effects of market volatilities on Adagene and Sutro Biopharma 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 Adagene with a short position of Sutro Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adagene and Sutro Biopharma.
Diversification Opportunities for Adagene and Sutro Biopharma
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Adagene and Sutro is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Adagene and Sutro Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sutro Biopharma and Adagene 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 Adagene are associated (or correlated) with Sutro Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sutro Biopharma has no effect on the direction of Adagene i.e., Adagene and Sutro Biopharma go up and down completely randomly.
Pair Corralation between Adagene and Sutro Biopharma
Given the investment horizon of 90 days Adagene is expected to generate 0.79 times more return on investment than Sutro Biopharma. However, Adagene is 1.27 times less risky than Sutro Biopharma. It trades about 0.01 of its potential returns per unit of risk. Sutro Biopharma is currently generating about -0.01 per unit of risk. If you would invest 212.00 in Adagene on September 2, 2025 and sell it today you would lose (11.00) from holding Adagene or give up 5.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Adagene vs. Sutro Biopharma
Performance |
| Timeline |
| Adagene |
| Sutro Biopharma |
Adagene and Sutro Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adagene and Sutro Biopharma
The main advantage of trading using opposite Adagene and Sutro Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adagene position performs unexpectedly, Sutro Biopharma 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 Sutro Biopharma will offset losses from the drop in Sutro Biopharma's long position.| Adagene vs. Data3 Limited | Adagene vs. Thai Beverage PCL | Adagene vs. Affinity Beverage Group | Adagene vs. Data Evolution Holdings |
| Sutro Biopharma vs. Cleantech Power Corp | Sutro Biopharma vs. LAir Liquide SA | Sutro Biopharma vs. LianDi Clean Technology | Sutro Biopharma vs. Integrated Drilling Equipment |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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