Correlation Between Amphastar and Oasmia Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Amphastar and Oasmia Pharmaceutical 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 Oasmia Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphastar P and Oasmia Pharmaceutical AB, you can compare the effects of market volatilities on Amphastar and Oasmia Pharmaceutical 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 Oasmia Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphastar and Oasmia Pharmaceutical.
Diversification Opportunities for Amphastar and Oasmia Pharmaceutical
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amphastar and Oasmia is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Amphastar P and Oasmia Pharmaceutical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasmia Pharmaceutical 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 Oasmia Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasmia Pharmaceutical has no effect on the direction of Amphastar i.e., Amphastar and Oasmia Pharmaceutical go up and down completely randomly.
Pair Corralation between Amphastar and Oasmia Pharmaceutical
Given the investment horizon of 90 days Amphastar P is expected to generate 0.1 times more return on investment than Oasmia Pharmaceutical. However, Amphastar P is 10.17 times less risky than Oasmia Pharmaceutical. It trades about 0.05 of its potential returns per unit of risk. Oasmia Pharmaceutical AB is currently generating about 0.0 per unit of risk. If you would invest 2,916 in Amphastar P on September 4, 2024 and sell it today you would earn a total of 1,672 from holding Amphastar P or generate 57.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 7.68% |
| Values | Daily Returns |
Amphastar P vs. Oasmia Pharmaceutical AB
Performance |
| Timeline |
| Amphastar P |
| Oasmia Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amphastar and Oasmia Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amphastar and Oasmia Pharmaceutical
The main advantage of trading using opposite Amphastar and Oasmia Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphastar position performs unexpectedly, Oasmia Pharmaceutical 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 Oasmia Pharmaceutical will offset losses from the drop in Oasmia Pharmaceutical's long position.| Amphastar vs. Collegium Pharmaceutical | Amphastar vs. Alkermes Plc | Amphastar vs. Evolus Inc | Amphastar vs. Neurocrine Biosciences |
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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.
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