Correlation Between Amphastar and Evotec SE
Can any of the company-specific risk be diversified away by investing in both Amphastar and Evotec SE 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 Amphastar and Evotec SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphastar P and Evotec SE ADR, you can compare the effects of market volatilities on Amphastar and Evotec SE 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 Amphastar with a short position of Evotec SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphastar and Evotec SE.
Diversification Opportunities for Amphastar and Evotec SE
Very good diversification
The 3 months correlation between Amphastar and Evotec is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Amphastar P and Evotec SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evotec SE ADR and Amphastar 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 Amphastar P are associated (or correlated) with Evotec SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evotec SE ADR has no effect on the direction of Amphastar i.e., Amphastar and Evotec SE go up and down completely randomly.
Pair Corralation between Amphastar and Evotec SE
Given the investment horizon of 90 days Amphastar P is expected to generate 0.5 times more return on investment than Evotec SE. However, Amphastar P is 2.0 times less risky than Evotec SE. It trades about -0.02 of its potential returns per unit of risk. Evotec SE ADR is currently generating about -0.02 per unit of risk. If you would invest 5,336 in Amphastar P on August 28, 2024 and sell it today you would lose (872.00) from holding Amphastar P or give up 16.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amphastar P vs. Evotec SE ADR
Performance |
| Timeline |
| Amphastar P |
| Evotec SE ADR |
Amphastar and Evotec SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amphastar and Evotec SE
The main advantage of trading using opposite Amphastar and Evotec SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphastar position performs unexpectedly, Evotec SE 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 Evotec SE will offset losses from the drop in Evotec SE's long position.| Amphastar vs. Capricor Therapeutics | Amphastar vs. Soleno Therapeutics | Amphastar vs. Bio Path Holdings | Amphastar vs. Moleculin Biotech |
| Evotec SE vs. Eliem Therapeutics | Evotec SE vs. HCW Biologics | Evotec SE vs. Scpharmaceuticals | Evotec SE vs. Milestone Pharmaceuticals |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |