Correlation Between Vir Biotechnology and Adagene
Can any of the company-specific risk be diversified away by investing in both Vir Biotechnology 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 Vir Biotechnology and Adagene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vir Biotechnology and Adagene, you can compare the effects of market volatilities on Vir Biotechnology 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 Vir Biotechnology with a short position of Adagene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vir Biotechnology and Adagene.
Diversification Opportunities for Vir Biotechnology and Adagene
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vir and Adagene is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Vir Biotechnology and Adagene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adagene and Vir Biotechnology 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 Vir Biotechnology 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 Vir Biotechnology i.e., Vir Biotechnology and Adagene go up and down completely randomly.
Pair Corralation between Vir Biotechnology and Adagene
Considering the 90-day investment horizon Vir Biotechnology is expected to generate 0.77 times more return on investment than Adagene. However, Vir Biotechnology is 1.31 times less risky than Adagene. It trades about 0.09 of its potential returns per unit of risk. Adagene is currently generating about 0.0 per unit of risk. If you would invest 514.00 in Vir Biotechnology on September 4, 2025 and sell it today you would earn a total of 93.00 from holding Vir Biotechnology or generate 18.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vir Biotechnology vs. Adagene
Performance |
| Timeline |
| Vir Biotechnology |
| Adagene |
Vir Biotechnology and Adagene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vir Biotechnology and Adagene
The main advantage of trading using opposite Vir Biotechnology and Adagene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vir Biotechnology 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.| Vir Biotechnology vs. Day Tradexchange | Vir Biotechnology vs. That Marketing Solution | Vir Biotechnology vs. Foreign Trade Bank | Vir Biotechnology vs. Capital Clean Energy |
| Adagene vs. Nexstar Broadcasting Group | Adagene vs. Avecho Biotechnology Limited | Adagene vs. Knight Transportation | Adagene vs. Vir Biotechnology |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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