Correlation Between Aclaris Therapeutics and Neogen
Can any of the company-specific risk be diversified away by investing in both Aclaris Therapeutics and Neogen 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 Aclaris Therapeutics and Neogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aclaris Therapeutics and Neogen, you can compare the effects of market volatilities on Aclaris Therapeutics and Neogen 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 Aclaris Therapeutics with a short position of Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aclaris Therapeutics and Neogen.
Diversification Opportunities for Aclaris Therapeutics and Neogen
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aclaris and Neogen is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aclaris Therapeutics and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen and Aclaris Therapeutics 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 Aclaris Therapeutics are associated (or correlated) with Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of Aclaris Therapeutics i.e., Aclaris Therapeutics and Neogen go up and down completely randomly.
Pair Corralation between Aclaris Therapeutics and Neogen
Given the investment horizon of 90 days Aclaris Therapeutics is expected to generate 2.62 times more return on investment than Neogen. However, Aclaris Therapeutics is 2.62 times more volatile than Neogen. It trades about 0.18 of its potential returns per unit of risk. Neogen is currently generating about 0.03 per unit of risk. If you would invest 105.00 in Aclaris Therapeutics on August 24, 2024 and sell it today you would earn a total of 327.00 from holding Aclaris Therapeutics or generate 311.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Aclaris Therapeutics vs. Neogen
Performance |
| Timeline |
| Aclaris Therapeutics |
| Neogen |
Aclaris Therapeutics and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aclaris Therapeutics and Neogen
The main advantage of trading using opposite Aclaris Therapeutics and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aclaris Therapeutics position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.| Aclaris Therapeutics vs. Neogen | Aclaris Therapeutics vs. Qiagen NV | Aclaris Therapeutics vs. Sotera Health Co | Aclaris Therapeutics vs. RadNet Inc |
| Neogen vs. IDEXX Laboratories | Neogen vs. Twist Bioscience Corp | Neogen vs. Guardant Health | Neogen vs. Agilent Technologies |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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