Correlation Between Adial Pharmaceuticals and Alaunos Therapeutics

Can any of the company-specific risk be diversified away by investing in both Adial Pharmaceuticals and Alaunos Therapeutics 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 Adial Pharmaceuticals and Alaunos Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Adial Pharmaceuticals and Alaunos Therapeutics

-0.25

Correlation Coefficient

Adial Pharmaceuticals  Alaunos Therapeutics

Very good diversification

The 3 months correlation between Adial and Alaunos is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Adial Pharmaceuticals and Alaunos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaunos Therapeutics and Adial Pharmaceuticals 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 Adial Pharmaceuticals are associated (or correlated) with Alaunos Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaunos Therapeutics has no effect on the direction of Adial Pharmaceuticals i.e., Adial Pharmaceuticals and Alaunos Therapeutics go up and down completely randomly.

Pair Corralation between Adial Pharmaceuticals and Alaunos Therapeutics

Given the investment horizon of 90 days Adial Pharmaceuticals is expected to under-perform the Alaunos Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Adial Pharmaceuticals is 1.98 times less risky than Alaunos Therapeutics. The stock trades about -0.06 of its potential returns per unit of risk. The Alaunos Therapeutics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  224.00  in Alaunos Therapeutics on September 3, 2025 and sell it today you would earn a total of  74.00  from holding Alaunos Therapeutics or generate 33.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Adial Pharmaceuticals  vs.  Alaunos Therapeutics

Adial Pharmaceuticals

Risk-Adjusted Performance

Weakest

Over the last 90 days Adial Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Alaunos Therapeutics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Alaunos Therapeutics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Alaunos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Adial Pharmaceuticals and Alaunos Therapeutics

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

The idea behind Adial Pharmaceuticals and Alaunos Therapeutics 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.