Correlation Between Indaptus Therapeutics and Addex Therapeutics

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

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

Diversification Opportunities for Indaptus Therapeutics and Addex Therapeutics

0.23

Correlation Coefficient

Indaptus Therapeutics  Addex Therapeutics

Modest diversification

The 3 months correlation between Indaptus and Addex is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Indaptus Therapeutics and Addex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addex Therapeutics and Indaptus Therapeutics 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 Indaptus Therapeutics are associated (or correlated) with Addex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addex Therapeutics has no effect on the direction of Indaptus Therapeutics i.e., Indaptus Therapeutics and Addex Therapeutics go up and down completely randomly.

Pair Corralation between Indaptus Therapeutics and Addex Therapeutics

Given the investment horizon of 90 days Indaptus Therapeutics is expected to generate 2.79 times more return on investment than Addex Therapeutics. However, Indaptus Therapeutics is 2.79 times more volatile than Addex Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Addex Therapeutics is currently generating about 0.02 per unit of risk. If you would invest  1,186  in Indaptus Therapeutics on May 14, 2025 and sell it today you would lose (362.00) from holding Indaptus Therapeutics or give up 30.52% of portfolio value over 90 days.

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

Indaptus Therapeutics  vs.  Addex Therapeutics

Indaptus Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Indaptus Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively unfluctuating fundamental indicators, Indaptus Therapeutics may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Addex Therapeutics

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Addex Therapeutics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Addex Therapeutics is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Indaptus Therapeutics and Addex Therapeutics

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

The idea behind Indaptus Therapeutics and Addex Therapeutics 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.