Correlation Between Amphastar and Intracellular
Can any of the company-specific risk be diversified away by investing in both Amphastar and Intracellular 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 Intracellular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphastar P and Intracellular Th, you can compare the effects of market volatilities on Amphastar and Intracellular 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 Intracellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphastar and Intracellular.
Diversification Opportunities for Amphastar and Intracellular
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amphastar and Intracellular is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Amphastar P and Intracellular Th in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracellular Th 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 Intracellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intracellular Th has no effect on the direction of Amphastar i.e., Amphastar and Intracellular go up and down completely randomly.
Pair Corralation between Amphastar and Intracellular
Given the investment horizon of 90 days Amphastar P is expected to under-perform the Intracellular. In addition to that, Amphastar is 1.17 times more volatile than Intracellular Th. It trades about -0.17 of its total potential returns per unit of risk. Intracellular Th is currently generating about 0.17 per unit of volatility. If you would invest 7,682 in Intracellular Th on August 28, 2024 and sell it today you would earn a total of 817.00 from holding Intracellular Th or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amphastar P vs. Intracellular Th
Performance |
| Timeline |
| Amphastar P |
| Intracellular Th |
Amphastar and Intracellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amphastar and Intracellular
The main advantage of trading using opposite Amphastar and Intracellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphastar position performs unexpectedly, Intracellular 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 Intracellular will offset losses from the drop in Intracellular's long position.| Amphastar vs. Collegium Pharmaceutical | Amphastar vs. Alkermes Plc | Amphastar vs. Evolus Inc | Amphastar vs. Neurocrine Biosciences |
| Intracellular vs. Alkermes Plc | Intracellular vs. Ironwood Pharmaceuticals | Intracellular vs. Pacira BioSciences, | Intracellular vs. Collegium Pharmaceutical |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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