Correlation Between Ascletis Pharma and Transgene
Can any of the company-specific risk be diversified away by investing in both Ascletis Pharma and Transgene 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 Ascletis Pharma and Transgene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascletis Pharma and Transgene SA, you can compare the effects of market volatilities on Ascletis Pharma and Transgene 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 Ascletis Pharma with a short position of Transgene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascletis Pharma and Transgene.
Diversification Opportunities for Ascletis Pharma and Transgene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ascletis and Transgene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ascletis Pharma and Transgene SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transgene SA and Ascletis Pharma 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 Ascletis Pharma are associated (or correlated) with Transgene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transgene SA has no effect on the direction of Ascletis Pharma i.e., Ascletis Pharma and Transgene go up and down completely randomly.
Pair Corralation between Ascletis Pharma and Transgene
Assuming the 90 days horizon Ascletis Pharma is expected to generate 1.74 times more return on investment than Transgene. However, Ascletis Pharma is 1.74 times more volatile than Transgene SA. It trades about 0.04 of its potential returns per unit of risk. Transgene SA is currently generating about 0.01 per unit of risk. If you would invest 20.00 in Ascletis Pharma on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Ascletis Pharma or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.94% |
| Values | Daily Returns |
Ascletis Pharma vs. Transgene SA
Performance |
| Timeline |
| Ascletis Pharma |
| Transgene SA |
Ascletis Pharma and Transgene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascletis Pharma and Transgene
The main advantage of trading using opposite Ascletis Pharma and Transgene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascletis Pharma position performs unexpectedly, Transgene 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 Transgene will offset losses from the drop in Transgene's long position.The idea behind Ascletis Pharma and Transgene SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Transgene vs. Radcom | Transgene vs. Westinghouse Air Brake | Transgene vs. Finnair Oyj | Transgene vs. AerSale 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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