Correlation Between ADF and Helix BioPharma

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

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

Diversification Opportunities for ADF and Helix BioPharma

0.57

Correlation Coefficient

ADF  Helix BioPharma

Very weak diversification

The 3 months correlation between ADF and Helix is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ADF Group and Helix BioPharma Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helix BioPharma Corp and ADF 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 ADF Group are associated (or correlated) with Helix BioPharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helix BioPharma Corp has no effect on the direction of ADF i.e., ADF and Helix BioPharma go up and down completely randomly.

Pair Corralation between ADF and Helix BioPharma

Assuming the 90 days trading horizon ADF is expected to generate 1.45 times less return on investment than Helix BioPharma. In addition to that, ADF is 1.96 times more volatile than Helix BioPharma Corp. It trades about 0.06 of its total potential returns per unit of risk. Helix BioPharma Corp is currently generating about 0.18 per unit of volatility. If you would invest  95.00  in Helix BioPharma Corp on May 19, 2025 and sell it today you would earn a total of  34.00  from holding Helix BioPharma Corp or generate 35.79% return on investment over 90 days.

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

ADF Group  vs.  Helix BioPharma Corp

ADF Group

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in ADF Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, ADF displayed solid returns over the last few months and may actually be approaching a breakup point.

Helix BioPharma Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Helix BioPharma Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Helix BioPharma displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ADF and Helix BioPharma

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

The idea behind ADF Group and Helix BioPharma Corp 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.