Correlation Between Absci Corp and Unity Biotechnology

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

By analyzing existing cross correlation between Absci Corp and Unity Biotechnology, you can compare the effects of market volatilities on Absci Corp and Unity Biotechnology 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 Absci Corp with a short position of Unity Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absci Corp and Unity Biotechnology.

Diversification Opportunities for Absci Corp and Unity Biotechnology

-0.06

Correlation Coefficient

Absci Corp  Unity Biotechnology

Good diversification

The 3 months correlation between Absci and Unity is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Absci Corp and Unity Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unity Biotechnology and Absci Corp 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 Absci Corp are associated (or correlated) with Unity Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unity Biotechnology has no effect on the direction of Absci Corp i.e., Absci Corp and Unity Biotechnology go up and down completely randomly.

Pair Corralation between Absci Corp and Unity Biotechnology

Given the investment horizon of 90 days Absci Corp is expected to generate 0.37 times more return on investment than Unity Biotechnology. However, Absci Corp is 2.72 times less risky than Unity Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Unity Biotechnology is currently generating about -0.28 per unit of risk. If you would invest  296.00  in Absci Corp on May 15, 2025 and sell it today you would lose (11.00) from holding Absci Corp or give up 3.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	62.3%
Values	Daily Returns

Absci Corp  vs.  Unity Biotechnology

Absci Corp

Risk-Adjusted Performance

Weak

Over the last 90 days Absci Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Absci Corp is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Unity Biotechnology

Risk-Adjusted Performance

Weakest

Over the last 90 days Unity Biotechnology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Absci Corp and Unity Biotechnology

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

The idea behind Absci Corp and Unity Biotechnology 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.