Correlation Between Alimera Sciences and Tilray
Can any of the company-specific risk be diversified away by investing in both Alimera Sciences and Tilray 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 Alimera Sciences and Tilray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alimera Sciences and Tilray Inc, you can compare the effects of market volatilities on Alimera Sciences and Tilray 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 Alimera Sciences with a short position of Tilray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alimera Sciences and Tilray.
Diversification Opportunities for Alimera Sciences and Tilray
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alimera and Tilray is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Alimera Sciences and Tilray Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tilray Inc and Alimera Sciences 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 Alimera Sciences are associated (or correlated) with Tilray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tilray Inc has no effect on the direction of Alimera Sciences i.e., Alimera Sciences and Tilray go up and down completely randomly.
Pair Corralation between Alimera Sciences and Tilray
If you would invest 554.00 in Alimera Sciences on October 26, 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 Against |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Alimera Sciences vs. Tilray Inc
Performance |
| Timeline |
| Alimera Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tilray Inc |
Alimera Sciences and Tilray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alimera Sciences and Tilray
The main advantage of trading using opposite Alimera Sciences and Tilray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimera Sciences position performs unexpectedly, Tilray 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 Tilray will offset losses from the drop in Tilray's long position.| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |