Correlation Between Ascendis Pharma and Exelixis
Can any of the company-specific risk be diversified away by investing in both Ascendis Pharma and Exelixis 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 Exelixis 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 Exelixis, you can compare the effects of market volatilities on Ascendis Pharma and Exelixis 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 Exelixis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Pharma and Exelixis.
Diversification Opportunities for Ascendis Pharma and Exelixis
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ascendis and Exelixis is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Pharma AS and Exelixis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exelixis 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 Exelixis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exelixis has no effect on the direction of Ascendis Pharma i.e., Ascendis Pharma and Exelixis go up and down completely randomly.
Pair Corralation between Ascendis Pharma and Exelixis
Given the investment horizon of 90 days Ascendis Pharma is expected to generate 7.46 times less return on investment than Exelixis. In addition to that, Ascendis Pharma is 1.41 times more volatile than Exelixis. It trades about 0.02 of its total potential returns per unit of risk. Exelixis is currently generating about 0.23 per unit of volatility. If you would invest 2,583 in Exelixis on August 31, 2024 and sell it today you would earn a total of 1,010 from holding Exelixis or generate 39.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascendis Pharma AS vs. Exelixis
Performance |
| Timeline |
| Ascendis Pharma AS |
| Exelixis |
Ascendis Pharma and Exelixis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Pharma and Exelixis
The main advantage of trading using opposite Ascendis Pharma and Exelixis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Pharma position performs unexpectedly, Exelixis 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 Exelixis will offset losses from the drop in Exelixis' long position.| Ascendis Pharma vs. Apellis Pharmaceuticals | Ascendis Pharma vs. BeiGene | Ascendis Pharma vs. Akero Therapeutics | Ascendis Pharma vs. Blueprint Medicines Corp |
| Exelixis vs. TG Therapeutics | Exelixis vs. Viking Therapeutics | Exelixis vs. Madrigal Pharmaceuticals | Exelixis vs. BioXcel Therapeutics |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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