Correlation Between Assertio Therapeutics and Amphastar
Can any of the company-specific risk be diversified away by investing in both Assertio Therapeutics and Amphastar 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 Assertio Therapeutics and Amphastar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assertio Therapeutics and Amphastar P, you can compare the effects of market volatilities on Assertio Therapeutics and Amphastar 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 Assertio Therapeutics with a short position of Amphastar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assertio Therapeutics and Amphastar.
Diversification Opportunities for Assertio Therapeutics and Amphastar
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Assertio and Amphastar is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Assertio Therapeutics and Amphastar P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphastar P and Assertio Therapeutics 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 Assertio Therapeutics are associated (or correlated) with Amphastar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphastar P has no effect on the direction of Assertio Therapeutics i.e., Assertio Therapeutics and Amphastar go up and down completely randomly.
Pair Corralation between Assertio Therapeutics and Amphastar
Given the investment horizon of 90 days Assertio Therapeutics is expected to generate 1.76 times more return on investment than Amphastar. However, Assertio Therapeutics is 1.76 times more volatile than Amphastar P. It trades about -0.03 of its potential returns per unit of risk. Amphastar P is currently generating about -0.14 per unit of risk. If you would invest 106.00 in Assertio Therapeutics on August 24, 2024 and sell it today you would lose (9.00) from holding Assertio Therapeutics or give up 8.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Assertio Therapeutics vs. Amphastar P
Performance |
| Timeline |
| Assertio Therapeutics |
| Amphastar P |
Assertio Therapeutics and Amphastar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assertio Therapeutics and Amphastar
The main advantage of trading using opposite Assertio Therapeutics and Amphastar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assertio Therapeutics position performs unexpectedly, Amphastar 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 Amphastar will offset losses from the drop in Amphastar's long position.| Assertio Therapeutics vs. Amneal Pharmaceuticals, Class | Assertio Therapeutics vs. Lifecore Biomedical | Assertio Therapeutics vs. Ironwood Pharmaceuticals | Assertio Therapeutics vs. Neurocrine Biosciences |
| Amphastar vs. Collegium Pharmaceutical | Amphastar vs. Alkermes Plc | Amphastar vs. Evolus Inc | Amphastar vs. Neurocrine Biosciences |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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