Correlation Between AcelRx Pharmaceuticals and Alimera Sciences
Can any of the company-specific risk be diversified away by investing in both AcelRx Pharmaceuticals and Alimera Sciences 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 AcelRx Pharmaceuticals and Alimera Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AcelRx Pharmaceuticals and Alimera Sciences, you can compare the effects of market volatilities on AcelRx Pharmaceuticals and Alimera Sciences 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 AcelRx Pharmaceuticals with a short position of Alimera Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of AcelRx Pharmaceuticals and Alimera Sciences.
Diversification Opportunities for AcelRx Pharmaceuticals and Alimera Sciences
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AcelRx and Alimera is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding AcelRx Pharmaceuticals and Alimera Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alimera Sciences and AcelRx Pharmaceuticals 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 AcelRx Pharmaceuticals are associated (or correlated) with Alimera Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alimera Sciences has no effect on the direction of AcelRx Pharmaceuticals i.e., AcelRx Pharmaceuticals and Alimera Sciences go up and down completely randomly.
Pair Corralation between AcelRx Pharmaceuticals and Alimera Sciences
If you would invest 554.00 in Alimera Sciences on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Alimera Sciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AcelRx Pharmaceuticals vs. Alimera Sciences
Performance |
| Timeline |
| AcelRx Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alimera Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
AcelRx Pharmaceuticals and Alimera Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AcelRx Pharmaceuticals and Alimera Sciences
The main advantage of trading using opposite AcelRx Pharmaceuticals and Alimera Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AcelRx Pharmaceuticals position performs unexpectedly, Alimera Sciences 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 Alimera Sciences will offset losses from the drop in Alimera Sciences' long position.| AcelRx Pharmaceuticals vs. Lifecore Biomedical | AcelRx Pharmaceuticals vs. Shuttle Pharmaceuticals | AcelRx Pharmaceuticals vs. Catalent | AcelRx Pharmaceuticals vs. Tilray Inc |
| Alimera Sciences vs. Shuttle Pharmaceuticals | Alimera Sciences vs. Lifecore Biomedical | Alimera Sciences vs. Journey Medical Corp | Alimera Sciences vs. Organogenesis Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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