Correlation Between Femasys and Adicet Bio

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

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

Diversification Opportunities for Femasys and Adicet Bio

-0.16

Correlation Coefficient

Femasys  Adicet Bio

Good diversification

The 3 months correlation between Femasys and Adicet is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and Adicet Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adicet Bio and Femasys 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 Femasys 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 Femasys i.e., Femasys and Adicet Bio go up and down completely randomly.

Pair Corralation between Femasys and Adicet Bio

Given the investment horizon of 90 days Femasys is expected to under-perform the Adicet Bio. In addition to that, Femasys is 1.11 times more volatile than Adicet Bio. It trades about -0.1 of its total potential returns per unit of risk. Adicet Bio is currently generating about 0.0 per unit of volatility. If you would invest  71.00  in Adicet Bio on May 19, 2025 and sell it today you would lose (5.00) from holding Adicet Bio or give up 7.04% of portfolio value over 90 days.

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

Femasys  vs.  Adicet Bio

Femasys

Risk-Adjusted Performance

Weakest

Over the last 90 days Femasys 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 primary indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company 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 comparatively stable technical and fundamental indicators, Adicet Bio is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Femasys and Adicet Bio

The main advantage of trading using opposite Femasys and Adicet Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys 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 Femasys 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 Stocks Directory module to find actively traded stocks across global markets.