Correlation Between Ascendis Pharma and MannKind Corp
Can any of the company-specific risk be diversified away by investing in both Ascendis Pharma and MannKind Corp 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 MannKind Corp 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 MannKind Corp, you can compare the effects of market volatilities on Ascendis Pharma and MannKind Corp 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 MannKind Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendis Pharma and MannKind Corp.
Diversification Opportunities for Ascendis Pharma and MannKind Corp
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ascendis and MannKind is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ascendis Pharma AS and MannKind Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MannKind Corp 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 MannKind Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MannKind Corp has no effect on the direction of Ascendis Pharma i.e., Ascendis Pharma and MannKind Corp go up and down completely randomly.
Pair Corralation between Ascendis Pharma and MannKind Corp
Given the investment horizon of 90 days Ascendis Pharma is expected to generate 14.58 times less return on investment than MannKind Corp. In addition to that, Ascendis Pharma is 1.14 times more volatile than MannKind Corp. It trades about 0.01 of its total potential returns per unit of risk. MannKind Corp is currently generating about 0.16 per unit of volatility. If you would invest 649.00 in MannKind Corp on August 24, 2024 and sell it today you would earn a total of 41.00 from holding MannKind Corp or generate 6.32% 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. MannKind Corp
Performance |
| Timeline |
| Ascendis Pharma AS |
| MannKind Corp |
Ascendis Pharma and MannKind Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendis Pharma and MannKind Corp
The main advantage of trading using opposite Ascendis Pharma and MannKind Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendis Pharma position performs unexpectedly, MannKind Corp 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 MannKind Corp will offset losses from the drop in MannKind Corp's long position.| Ascendis Pharma vs. Lyra Therapeutics | Ascendis Pharma vs. Hookipa Pharma | Ascendis Pharma vs. Cingulate Warrants | Ascendis Pharma vs. SAB Biotherapeutics |
| MannKind Corp vs. Biomarin Pharmaceutical | MannKind Corp vs. Vaxcyte | MannKind Corp vs. Liquidia Technologies | MannKind Corp vs. Legend Biotech 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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