Correlation Between Ascendis Pharma and G2D Investments
Can any of the company-specific risk be diversified away by investing in both Ascendis Pharma and G2D Investments 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 Ascendis Pharma and G2D Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendis Pharma AS and G2D Investments, you can compare the effects of market volatilities on Ascendis Pharma and G2D Investments 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 Ascendis Pharma with a short position of G2D Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Pharma and G2D Investments.
Diversification Opportunities for Ascendis Pharma and G2D Investments
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ascendis and G2D is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Pharma AS and G2D Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G2D Investments and Ascendis Pharma 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 Ascendis Pharma AS are associated (or correlated) with G2D Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G2D Investments has no effect on the direction of Ascendis Pharma i.e., Ascendis Pharma and G2D Investments go up and down completely randomly.
Pair Corralation between Ascendis Pharma and G2D Investments
Assuming the 90 days trading horizon Ascendis Pharma AS is expected to generate 0.84 times more return on investment than G2D Investments. However, Ascendis Pharma AS is 1.19 times less risky than G2D Investments. It trades about 0.05 of its potential returns per unit of risk. G2D Investments is currently generating about -0.04 per unit of risk. If you would invest 4,842 in Ascendis Pharma AS on September 1, 2024 and sell it today you would earn a total of 653.00 from holding Ascendis Pharma AS or generate 13.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Ascendis Pharma AS vs. G2D Investments
Performance |
| Timeline |
| Ascendis Pharma AS |
| G2D Investments |
Ascendis Pharma and G2D Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Pharma and G2D Investments
The main advantage of trading using opposite Ascendis Pharma and G2D Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Pharma position performs unexpectedly, G2D Investments 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 G2D Investments will offset losses from the drop in G2D Investments' long position.| Ascendis Pharma vs. Raytheon Technologies | Ascendis Pharma vs. Bemobi Mobile Tech | Ascendis Pharma vs. Uber Technologies | Ascendis Pharma vs. Marvell Technology |
| G2D Investments vs. Banco BTG Pactual | G2D Investments vs. Hsi Malls Fundo | G2D Investments vs. Habitat Ii |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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