Correlation Between Applied DNA and Solid Biosciences

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

By analyzing existing cross correlation between Applied DNA Sciences and Solid Biosciences LLC, you can compare the effects of market volatilities on Applied DNA and Solid 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 Applied DNA with a short position of Solid Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied DNA and Solid Biosciences.

Diversification Opportunities for Applied DNA and Solid Biosciences

0.59

Correlation Coefficient

Applied DNA  Solid Biosciences

Very weak diversification

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

Pair Corralation between Applied DNA and Solid Biosciences

Given the investment horizon of 90 days Applied DNA Sciences is expected to generate 2.61 times more return on investment than Solid Biosciences. However, Applied DNA is 2.61 times more volatile than Solid Biosciences LLC. It trades about 0.35 of its potential returns per unit of risk. Solid Biosciences LLC is currently generating about 0.06 per unit of risk. If you would invest  239.00  in Applied DNA Sciences on September 9, 2025 and sell it today you would earn a total of  323.00  from holding Applied DNA Sciences or generate 135.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	32.31%
Values	Daily Returns

Applied DNA Sciences  vs.  Solid Biosciences LLC

Applied DNA Sciences

Risk-Adjusted Performance

Strong

Over the last 90 days Applied DNA Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak fundamental indicators, Applied DNA displayed solid returns over the last few months and may actually be approaching a breakup point.

Solid Biosciences LLC

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Solid Biosciences LLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental indicators, Solid Biosciences sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Applied DNA and Solid Biosciences

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

The idea behind Applied DNA Sciences and Solid Biosciences LLC 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.