Correlation Between Amneal Pharmaceuticals and PKSHA TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Amneal Pharmaceuticals and PKSHA TECHNOLOGY 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 Amneal Pharmaceuticals and PKSHA TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amneal Pharmaceuticals and PKSHA TECHNOLOGY INC, you can compare the effects of market volatilities on Amneal Pharmaceuticals and PKSHA TECHNOLOGY 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 Amneal Pharmaceuticals with a short position of PKSHA TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amneal Pharmaceuticals and PKSHA TECHNOLOGY.
Diversification Opportunities for Amneal Pharmaceuticals and PKSHA TECHNOLOGY
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amneal and PKSHA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Amneal Pharmaceuticals and PKSHA TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKSHA TECHNOLOGY INC and Amneal Pharmaceuticals 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 Amneal Pharmaceuticals are associated (or correlated) with PKSHA TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKSHA TECHNOLOGY INC has no effect on the direction of Amneal Pharmaceuticals i.e., Amneal Pharmaceuticals and PKSHA TECHNOLOGY go up and down completely randomly.
Pair Corralation between Amneal Pharmaceuticals and PKSHA TECHNOLOGY
Assuming the 90 days horizon Amneal Pharmaceuticals is expected to generate 0.83 times more return on investment than PKSHA TECHNOLOGY. However, Amneal Pharmaceuticals is 1.2 times less risky than PKSHA TECHNOLOGY. It trades about 0.07 of its potential returns per unit of risk. PKSHA TECHNOLOGY INC is currently generating about 0.04 per unit of risk. If you would invest 595.00 in Amneal Pharmaceuticals on September 26, 2024 and sell it today you would earn a total of 135.00 from holding Amneal Pharmaceuticals or generate 22.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amneal Pharmaceuticals vs. PKSHA TECHNOLOGY INC
Performance |
| Timeline |
| Amneal Pharmaceuticals |
| PKSHA TECHNOLOGY INC |
Amneal Pharmaceuticals and PKSHA TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amneal Pharmaceuticals and PKSHA TECHNOLOGY
The main advantage of trading using opposite Amneal Pharmaceuticals and PKSHA TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amneal Pharmaceuticals position performs unexpectedly, PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY will offset losses from the drop in PKSHA TECHNOLOGY's long position.| Amneal Pharmaceuticals vs. KRAKATAU STEEL B | Amneal Pharmaceuticals vs. BLUESCOPE STEEL | Amneal Pharmaceuticals vs. LPKF Laser Electronics | Amneal Pharmaceuticals vs. Meiko Electronics Co |
| PKSHA TECHNOLOGY vs. Adobe Inc | PKSHA TECHNOLOGY vs. ADYEN NV UNSPADR001 | PKSHA TECHNOLOGY vs. Square Inc | PKSHA TECHNOLOGY vs. CrowdStrike Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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