Correlation Between Virax Biolabs and Addentax Group

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

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

Diversification Opportunities for Virax Biolabs and Addentax Group

0.37

Correlation Coefficient

Virax Biolabs  Addentax Group

Weak diversification

The 3 months correlation between Virax and Addentax is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Virax Biolabs Group and Addentax Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addentax Group Corp and Virax Biolabs 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 Virax Biolabs Group are associated (or correlated) with Addentax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addentax Group Corp has no effect on the direction of Virax Biolabs i.e., Virax Biolabs and Addentax Group go up and down completely randomly.

Pair Corralation between Virax Biolabs and Addentax Group

Given the investment horizon of 90 days Virax Biolabs Group is expected to generate 0.62 times more return on investment than Addentax Group. However, Virax Biolabs Group is 1.62 times less risky than Addentax Group. It trades about -0.04 of its potential returns per unit of risk. Addentax Group Corp is currently generating about -0.12 per unit of risk. If you would invest  101.00  in Virax Biolabs Group on May 3, 2025 and sell it today you would lose (16.00) from holding Virax Biolabs Group or give up 15.84% of portfolio value over 90 days.

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

Virax Biolabs Group  vs.  Addentax Group Corp

Virax Biolabs Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Virax Biolabs Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of 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.

Addentax Group Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Addentax Group Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Virax Biolabs and Addentax Group

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

The idea behind Virax Biolabs Group and Addentax Group 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.