Correlation Between Ascendis Pharma and BGNE Old
Can any of the company-specific risk be diversified away by investing in both Ascendis Pharma and BGNE Old 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 Ascendis Pharma and BGNE Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendis Pharma AS and BGNE Old, you can compare the effects of market volatilities on Ascendis Pharma and BGNE Old 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 Ascendis Pharma with a short position of BGNE Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Pharma and BGNE Old.
Diversification Opportunities for Ascendis Pharma and BGNE Old
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ascendis and BGNE is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Pharma AS and BGNE Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGNE Old and Ascendis 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 Ascendis Pharma AS are associated (or correlated) with BGNE Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGNE Old has no effect on the direction of Ascendis Pharma i.e., Ascendis Pharma and BGNE Old go up and down completely randomly.
Pair Corralation between Ascendis Pharma and BGNE Old
Given the investment horizon of 90 days Ascendis Pharma is expected to generate 23.47 times less return on investment than BGNE Old. But when comparing it to its historical volatility, Ascendis Pharma AS is 1.09 times less risky than BGNE Old. It trades about 0.0 of its potential returns per unit of risk. BGNE Old is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 14,776 in BGNE Old on November 3, 2024 and sell it today you would earn a total of 3,695 from holding BGNE Old or generate 25.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.94% |
| Values | Daily Returns |
Ascendis Pharma AS vs. BGNE Old
Performance |
| Timeline |
| Ascendis Pharma AS |
| BGNE Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ascendis Pharma and BGNE Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Pharma and BGNE Old
The main advantage of trading using opposite Ascendis Pharma and BGNE Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Pharma position performs unexpectedly, BGNE Old 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 BGNE Old will offset losses from the drop in BGNE Old's long position.| Ascendis Pharma vs. Apellis Pharmaceuticals | Ascendis Pharma vs. Akero Therapeutics | Ascendis Pharma vs. Blueprint Medicines Corp | Ascendis Pharma vs. Replimune Group |
| BGNE Old vs. Ascendis Pharma AS | BGNE Old vs. Apellis Pharmaceuticals | BGNE Old vs. Akero Therapeutics | BGNE Old vs. Blueprint Medicines 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |