Correlation Between Amphastar and Viatris
Can any of the company-specific risk be diversified away by investing in both Amphastar and Viatris 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 Viatris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphastar P and Viatris, you can compare the effects of market volatilities on Amphastar and Viatris 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 Viatris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphastar and Viatris.
Diversification Opportunities for Amphastar and Viatris
Almost no diversification
The 3 months correlation between Amphastar and Viatris is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Amphastar P and Viatris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viatris 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 Viatris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viatris has no effect on the direction of Amphastar i.e., Amphastar and Viatris go up and down completely randomly.
Pair Corralation between Amphastar and Viatris
Given the investment horizon of 90 days Amphastar P is expected to under-perform the Viatris. In addition to that, Amphastar is 1.27 times more volatile than Viatris. It trades about -0.44 of its total potential returns per unit of risk. Viatris is currently generating about -0.18 per unit of volatility. If you would invest 1,130 in Viatris on November 18, 2024 and sell it today you would lose (50.00) from holding Viatris or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amphastar P vs. Viatris
Performance |
| Timeline |
| Amphastar P |
| Viatris |
Amphastar and Viatris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amphastar and Viatris
The main advantage of trading using opposite Amphastar and Viatris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphastar position performs unexpectedly, Viatris 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 Viatris will offset losses from the drop in Viatris' long position.| Amphastar vs. Collegium Pharmaceutical | Amphastar vs. Alkermes Plc | Amphastar vs. Evolus Inc | Amphastar vs. Neurocrine Biosciences |
| Viatris vs. Bausch Health Companies | Viatris vs. Tilray Inc | Viatris vs. Takeda Pharmaceutical Co | Viatris vs. Elanco Animal Health |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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