Correlation Between Adagene and Seer

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

Diversification Opportunities for Adagene and Seer

-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between Adagene and Seer is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Adagene and Seer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seer Inc 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 Seer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seer Inc has no effect on the direction of Adagene i.e., Adagene and Seer go up and down completely randomly.

Pair Corralation between Adagene and Seer

Given the investment horizon of 90 days Adagene is expected to generate 11.07 times less return on investment than Seer. In addition to that, Adagene is 1.88 times more volatile than Seer Inc. It trades about 0.0 of its total potential returns per unit of risk. Seer Inc is currently generating about 0.08 per unit of volatility. If you would invest  167.00  in Seer Inc on September 18, 2024 and sell it today you would earn a total of  69.00  from holding Seer Inc or generate 41.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Adagene  vs.  Seer Inc

 Performance 
       Timeline  
Adagene 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Adagene are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Adagene may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Seer Inc 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Seer Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Seer reported solid returns over the last few months and may actually be approaching a breakup point.

Adagene and Seer Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Adagene and Seer

The main advantage of trading using opposite Adagene and Seer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adagene position performs unexpectedly, Seer 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 Seer will offset losses from the drop in Seer's long position.
The idea behind Adagene and Seer Inc 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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