Correlation Between Advent Technologies and Ensysce Biosciences
Can any of the company-specific risk be diversified away by investing in both Advent Technologies and Ensysce Biosciences 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 Advent Technologies and Ensysce Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advent Technologies Holdings and Ensysce Biosciences, you can compare the effects of market volatilities on Advent Technologies and Ensysce Biosciences 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 Advent Technologies with a short position of Ensysce Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and Ensysce Biosciences.
Diversification Opportunities for Advent Technologies and Ensysce Biosciences
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advent and Ensysce is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and Ensysce Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ensysce Biosciences and Advent Technologies 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 Advent Technologies Holdings are associated (or correlated) with Ensysce Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ensysce Biosciences has no effect on the direction of Advent Technologies i.e., Advent Technologies and Ensysce Biosciences go up and down completely randomly.
Pair Corralation between Advent Technologies and Ensysce Biosciences
Assuming the 90 days horizon Advent Technologies Holdings is expected to generate 2.27 times more return on investment than Ensysce Biosciences. However, Advent Technologies is 2.27 times more volatile than Ensysce Biosciences. It trades about 0.02 of its potential returns per unit of risk. Ensysce Biosciences is currently generating about -0.11 per unit of risk. If you would invest 0.72 in Advent Technologies Holdings on April 24, 2025 and sell it today you would lose (0.15) from holding Advent Technologies Holdings or give up 20.83% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Advent Technologies Holdings vs. Ensysce Biosciences
Performance |
Timeline |
Advent Technologies |
Ensysce Biosciences |
Advent Technologies and Ensysce Biosciences Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Advent Technologies and Ensysce Biosciences
The main advantage of trading using opposite Advent Technologies and Ensysce Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, Ensysce Biosciences 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 Ensysce Biosciences will offset losses from the drop in Ensysce Biosciences' long position.Advent Technologies vs. Advent Technologies Holdings | Advent Technologies vs. Brookfield Renewable Partners | Advent Technologies vs. Fusion Fuel Green | Advent Technologies vs. Fusion Fuel Green |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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