Correlation Between Unity Biotechnology and Adaptimmune Therapeutics
Can any of the company-specific risk be diversified away by investing in both Unity Biotechnology and Adaptimmune 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 Unity Biotechnology and Adaptimmune Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unity Biotechnology and Adaptimmune Therapeutics Plc, you can compare the effects of market volatilities on Unity Biotechnology and Adaptimmune 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 Unity Biotechnology with a short position of Adaptimmune Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unity Biotechnology and Adaptimmune Therapeutics.
Diversification Opportunities for Unity Biotechnology and Adaptimmune Therapeutics
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Unity and Adaptimmune is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Unity Biotechnology and Adaptimmune Therapeutics Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adaptimmune Therapeutics and Unity 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 Unity Biotechnology are associated (or correlated) with Adaptimmune Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adaptimmune Therapeutics has no effect on the direction of Unity Biotechnology i.e., Unity Biotechnology and Adaptimmune Therapeutics go up and down completely randomly.
Pair Corralation between Unity Biotechnology and Adaptimmune Therapeutics
Considering the 90-day investment horizon Unity Biotechnology is expected to under-perform the Adaptimmune Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Unity Biotechnology is 1.0 times less risky than Adaptimmune Therapeutics. The stock trades about -0.29 of its potential returns per unit of risk. The Adaptimmune Therapeutics Plc is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Adaptimmune Therapeutics Plc on May 7, 2025 and sell it today you would lose (22.07) from holding Adaptimmune Therapeutics Plc or give up 73.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 72.13% |
Values | Daily Returns |
Unity Biotechnology vs. Adaptimmune Therapeutics Plc
Performance |
Timeline |
Unity Biotechnology |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Adaptimmune Therapeutics |
Unity Biotechnology and Adaptimmune Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Unity Biotechnology and Adaptimmune Therapeutics
The main advantage of trading using opposite Unity Biotechnology and Adaptimmune Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unity Biotechnology position performs unexpectedly, Adaptimmune 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 Adaptimmune Therapeutics will offset losses from the drop in Adaptimmune Therapeutics' long position.Unity Biotechnology vs. Absci Corp | Unity Biotechnology vs. Precision BioSciences | Unity Biotechnology vs. Caribou Biosciences | Unity Biotechnology vs. LENZ Therapeutics |
Adaptimmune Therapeutics vs. ADC Therapeutics SA | Adaptimmune Therapeutics vs. Agenus Inc | Adaptimmune Therapeutics vs. Cellectis SA | Adaptimmune Therapeutics vs. MacroGenics |
Check out your portfolio center.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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |