Correlation Between Agile Thrpe and Alimera Sciences
Can any of the company-specific risk be diversified away by investing in both Agile Thrpe 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 Agile Thrpe and Alimera Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agile Thrpe and Alimera Sciences, you can compare the effects of market volatilities on Agile Thrpe 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 Agile Thrpe with a short position of Alimera Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agile Thrpe and Alimera Sciences.
Diversification Opportunities for Agile Thrpe and Alimera Sciences
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agile and Alimera is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Agile Thrpe and Alimera Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alimera Sciences and Agile Thrpe 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 Agile Thrpe 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 Agile Thrpe i.e., Agile Thrpe and Alimera Sciences go up and down completely randomly.
Pair Corralation between Agile Thrpe and Alimera Sciences
Given the investment horizon of 90 days Agile Thrpe is expected to under-perform the Alimera Sciences. But the stock apears to be less risky and, when comparing its historical volatility, Agile Thrpe is 1.63 times less risky than Alimera Sciences. The stock trades about -0.22 of its potential returns per unit of risk. The Alimera Sciences is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 291.00 in Alimera Sciences on August 28, 2024 and sell it today you would earn a total of 263.00 from holding Alimera Sciences or generate 90.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.95% |
| Values | Daily Returns |
Agile Thrpe vs. Alimera Sciences
Performance |
| Timeline |
| Agile Thrpe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alimera Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agile Thrpe and Alimera Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agile Thrpe and Alimera Sciences
The main advantage of trading using opposite Agile Thrpe and Alimera Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agile Thrpe 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.| Agile Thrpe vs. Assertio Therapeutics | Agile Thrpe vs. Amneal Pharmaceuticals, Class | Agile Thrpe vs. Lifecore Biomedical | Agile Thrpe vs. Alpha Teknova |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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