Correlation Between Ascendis Pharma and JHSF Participaes
Can any of the company-specific risk be diversified away by investing in both Ascendis Pharma and JHSF Participaes 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 JHSF Participaes 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 JHSF Participaes SA, you can compare the effects of market volatilities on Ascendis Pharma and JHSF Participaes 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 JHSF Participaes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Pharma and JHSF Participaes.
Diversification Opportunities for Ascendis Pharma and JHSF Participaes
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ascendis and JHSF is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Pharma AS and JHSF Participaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JHSF Participaes 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 JHSF Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JHSF Participaes has no effect on the direction of Ascendis Pharma i.e., Ascendis Pharma and JHSF Participaes go up and down completely randomly.
Pair Corralation between Ascendis Pharma and JHSF Participaes
Assuming the 90 days trading horizon Ascendis Pharma is expected to generate 2.19 times less return on investment than JHSF Participaes. But when comparing it to its historical volatility, Ascendis Pharma AS is 2.87 times less risky than JHSF Participaes. It trades about 0.22 of its potential returns per unit of risk. JHSF Participaes SA is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 361.00 in JHSF Participaes SA on November 2, 2024 and sell it today you would earn a total of 22.00 from holding JHSF Participaes SA or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendis Pharma AS vs. JHSF Participaes SA
Performance |
| Timeline |
| Ascendis Pharma AS |
| JHSF Participaes |
Ascendis Pharma and JHSF Participaes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Pharma and JHSF Participaes
The main advantage of trading using opposite Ascendis Pharma and JHSF Participaes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Pharma position performs unexpectedly, JHSF Participaes 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 JHSF Participaes will offset losses from the drop in JHSF Participaes' long position.| Ascendis Pharma vs. Novo Nordisk AS | Ascendis Pharma vs. Vertex Pharmaceuticals Incorporated | Ascendis Pharma vs. Moderna | Ascendis Pharma vs. BIONTECH SE DRN |
| JHSF Participaes vs. Tecnisa SA | JHSF Participaes vs. Even Construtora e | JHSF Participaes vs. EZTEC Empreendimentos e | JHSF Participaes vs. Gafisa SA |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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