Correlation Between Ascendis Pharma and BeiGene
Can any of the company-specific risk be diversified away by investing in both Ascendis Pharma and BeiGene 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 BeiGene 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 BeiGene, you can compare the effects of market volatilities on Ascendis Pharma and BeiGene 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 BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Pharma and BeiGene.
Diversification Opportunities for Ascendis Pharma and BeiGene
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ascendis and BeiGene is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Pharma AS and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Ascendis Pharma i.e., Ascendis Pharma and BeiGene go up and down completely randomly.
Pair Corralation between Ascendis Pharma and BeiGene
Given the investment horizon of 90 days Ascendis Pharma AS is expected to generate 1.08 times more return on investment than BeiGene. However, Ascendis Pharma is 1.08 times more volatile than BeiGene. It trades about 0.03 of its potential returns per unit of risk. BeiGene is currently generating about -0.29 per unit of risk. If you would invest 12,944 in Ascendis Pharma AS on August 28, 2024 and sell it today you would earn a total of 141.00 from holding Ascendis Pharma AS or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendis Pharma AS vs. BeiGene
Performance |
| Timeline |
| Ascendis Pharma AS |
| BeiGene |
Ascendis Pharma and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Pharma and BeiGene
The main advantage of trading using opposite Ascendis Pharma and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Pharma position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Ascendis Pharma vs. Eliem Therapeutics | Ascendis Pharma vs. HCW Biologics | Ascendis Pharma vs. Scpharmaceuticals | Ascendis Pharma vs. Milestone Pharmaceuticals |
| BeiGene vs. Eliem Therapeutics | BeiGene vs. HCW Biologics | BeiGene vs. Scpharmaceuticals | BeiGene vs. Milestone Pharmaceuticals |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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