Correlation Between Ascendis Pharma and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both Ascendis Pharma and Lloyds Banking 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 Lloyds Banking 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 Lloyds Banking Group, you can compare the effects of market volatilities on Ascendis Pharma and Lloyds Banking 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 Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Pharma and Lloyds Banking.
Diversification Opportunities for Ascendis Pharma and Lloyds Banking
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ascendis and Lloyds is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Pharma AS and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group 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 Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of Ascendis Pharma i.e., Ascendis Pharma and Lloyds Banking go up and down completely randomly.
Pair Corralation between Ascendis Pharma and Lloyds Banking
Assuming the 90 days trading horizon Ascendis Pharma AS is expected to generate 1.32 times more return on investment than Lloyds Banking. However, Ascendis Pharma is 1.32 times more volatile than Lloyds Banking Group. It trades about 0.05 of its potential returns per unit of risk. Lloyds Banking Group is currently generating about 0.05 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 Together |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Ascendis Pharma AS vs. Lloyds Banking Group
Performance |
| Timeline |
| Ascendis Pharma AS |
| Lloyds Banking Group |
Ascendis Pharma and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Pharma and Lloyds Banking
The main advantage of trading using opposite Ascendis Pharma and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Pharma position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.| Ascendis Pharma vs. Raytheon Technologies | Ascendis Pharma vs. Bemobi Mobile Tech | Ascendis Pharma vs. Uber Technologies | Ascendis Pharma vs. Marvell Technology |
| Lloyds Banking vs. Fras le SA | Lloyds Banking vs. Western Digital | Lloyds Banking vs. Energisa SA | Lloyds Banking vs. Clave Indices De |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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