Correlation Between Alkermes Plc and Lucy Scientific
Can any of the company-specific risk be diversified away by investing in both Alkermes Plc and Lucy Scientific 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 Alkermes Plc and Lucy Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkermes Plc and Lucy Scientific Discovery, you can compare the effects of market volatilities on Alkermes Plc and Lucy Scientific 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 Alkermes Plc with a short position of Lucy Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkermes Plc and Lucy Scientific.
Diversification Opportunities for Alkermes Plc and Lucy Scientific
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alkermes and Lucy is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Alkermes Plc and Lucy Scientific Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucy Scientific Discovery and Alkermes Plc 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 Alkermes Plc are associated (or correlated) with Lucy Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucy Scientific Discovery has no effect on the direction of Alkermes Plc i.e., Alkermes Plc and Lucy Scientific go up and down completely randomly.
Pair Corralation between Alkermes Plc and Lucy Scientific
If you would invest 2,799 in Alkermes Plc on August 31, 2024 and sell it today you would earn a total of 133.00 from holding Alkermes Plc or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
Alkermes Plc vs. Lucy Scientific Discovery
Performance |
| Timeline |
| Alkermes Plc |
| Lucy Scientific Discovery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alkermes Plc and Lucy Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkermes Plc and Lucy Scientific
The main advantage of trading using opposite Alkermes Plc and Lucy Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkermes Plc position performs unexpectedly, Lucy Scientific 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 Lucy Scientific will offset losses from the drop in Lucy Scientific's long position.| Alkermes Plc vs. Intracellular Th | Alkermes Plc vs. Ironwood Pharmaceuticals | Alkermes Plc vs. Pacira BioSciences, | Alkermes Plc vs. ANI Pharmaceuticals |
| Lucy Scientific vs. Shuttle Pharmaceuticals | Lucy Scientific vs. Lifecore Biomedical | Lucy Scientific vs. Journey Medical Corp | Lucy Scientific vs. Akanda Corp |
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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