Correlation Between PDS Biotechnology and ABVC Biopharma

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

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

Diversification Opportunities for PDS Biotechnology and ABVC Biopharma

0.19

Correlation Coefficient

PDS Biotechnology  ABVC Biopharma

Average diversification

The 3 months correlation between PDS and ABVC is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding PDS Biotechnology Corp and ABVC Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABVC Biopharma and PDS Biotechnology 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 PDS Biotechnology Corp are associated (or correlated) with ABVC Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABVC Biopharma has no effect on the direction of PDS Biotechnology i.e., PDS Biotechnology and ABVC Biopharma go up and down completely randomly.

Pair Corralation between PDS Biotechnology and ABVC Biopharma

Given the investment horizon of 90 days PDS Biotechnology Corp is expected to generate 1.33 times more return on investment than ABVC Biopharma. However, PDS Biotechnology is 1.33 times more volatile than ABVC Biopharma. It trades about -0.03 of its potential returns per unit of risk. ABVC Biopharma is currently generating about -0.11 per unit of risk. If you would invest  116.00  in PDS Biotechnology Corp on September 14, 2025 and sell it today you would lose (19.00) from holding PDS Biotechnology Corp or give up 16.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

PDS Biotechnology Corp  vs.  ABVC Biopharma

PDS Biotechnology Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days PDS Biotechnology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

ABVC Biopharma

Risk-Adjusted Performance

Weakest

Over the last 90 days ABVC Biopharma has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with PDS Biotechnology and ABVC Biopharma

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

The idea behind PDS Biotechnology Corp and ABVC Biopharma 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.