Correlation Between Omeros and Astellas Pharma
Can any of the company-specific risk be diversified away by investing in both Omeros and Astellas Pharma 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 Omeros and Astellas Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omeros and Astellas Pharma, you can compare the effects of market volatilities on Omeros and Astellas Pharma 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 Omeros with a short position of Astellas Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omeros and Astellas Pharma.
Diversification Opportunities for Omeros and Astellas Pharma
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Omeros and Astellas is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Omeros and Astellas Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astellas Pharma and Omeros 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 Omeros are associated (or correlated) with Astellas Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astellas Pharma has no effect on the direction of Omeros i.e., Omeros and Astellas Pharma go up and down completely randomly.
Pair Corralation between Omeros and Astellas Pharma
Assuming the 90 days horizon Omeros is expected to generate 1.59 times more return on investment than Astellas Pharma. However, Omeros is 1.59 times more volatile than Astellas Pharma. It trades about 0.07 of its potential returns per unit of risk. Astellas Pharma is currently generating about 0.09 per unit of risk. If you would invest 790.00 in Omeros on November 27, 2024 and sell it today you would earn a total of 32.00 from holding Omeros or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omeros vs. Astellas Pharma
Performance |
| Timeline |
| Omeros |
| Astellas Pharma |
Omeros and Astellas Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omeros and Astellas Pharma
The main advantage of trading using opposite Omeros and Astellas Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omeros position performs unexpectedly, Astellas Pharma 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 Astellas Pharma will offset losses from the drop in Astellas Pharma's long position.| Omeros vs. EMPEROR ENT HOTEL | Omeros vs. Globex Mining Enterprises | Omeros vs. Meli Hotels International | Omeros vs. MELIA HOTELS |
| Astellas Pharma vs. BJs Wholesale Club | Astellas Pharma vs. GOME Retail Holdings | Astellas Pharma vs. Rayonier Advanced Materials | Astellas Pharma vs. RYU Apparel |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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