Correlation Between ADTRAN and Adicet Bio

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

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

Diversification Opportunities for ADTRAN and Adicet Bio

0.59

Correlation Coefficient

ADTRAN  Adicet Bio

Very weak diversification

The 3 months correlation between ADTRAN and Adicet is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ADTRAN Inc and Adicet Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adicet Bio and ADTRAN 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 ADTRAN Inc are associated (or correlated) with Adicet Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adicet Bio has no effect on the direction of ADTRAN i.e., ADTRAN and Adicet Bio go up and down completely randomly.

Pair Corralation between ADTRAN and Adicet Bio

Given the investment horizon of 90 days ADTRAN Inc is expected to generate 0.82 times more return on investment than Adicet Bio. However, ADTRAN Inc is 1.23 times less risky than Adicet Bio. It trades about -0.04 of its potential returns per unit of risk. Adicet Bio is currently generating about -0.06 per unit of risk. If you would invest  1,020  in ADTRAN Inc on September 6, 2025 and sell it today you would lose (166.00) from holding ADTRAN Inc or give up 16.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ADTRAN Inc  vs.  Adicet Bio

ADTRAN Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days ADTRAN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Adicet Bio

Risk-Adjusted Performance

Weakest

Over the last 90 days Adicet Bio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with ADTRAN and Adicet Bio

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

The idea behind ADTRAN Inc and Adicet Bio 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.