Correlation Between Collegium Pharmaceutical and Amphastar
Can any of the company-specific risk be diversified away by investing in both Collegium Pharmaceutical 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 Collegium Pharmaceutical and Amphastar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collegium Pharmaceutical and Amphastar P, you can compare the effects of market volatilities on Collegium Pharmaceutical 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 Collegium Pharmaceutical with a short position of Amphastar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collegium Pharmaceutical and Amphastar.
Diversification Opportunities for Collegium Pharmaceutical and Amphastar
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Collegium and Amphastar is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Collegium Pharmaceutical and Amphastar P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphastar P and Collegium Pharmaceutical 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 Collegium Pharmaceutical 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 Collegium Pharmaceutical i.e., Collegium Pharmaceutical and Amphastar go up and down completely randomly.
Pair Corralation between Collegium Pharmaceutical and Amphastar
Given the investment horizon of 90 days Collegium Pharmaceutical is expected to generate 1.45 times more return on investment than Amphastar. However, Collegium Pharmaceutical is 1.45 times more volatile than Amphastar P. It trades about -0.25 of its potential returns per unit of risk. Amphastar P is currently generating about -0.44 per unit of risk. If you would invest 3,335 in Collegium Pharmaceutical on November 18, 2024 and sell it today you would lose (369.00) from holding Collegium Pharmaceutical or give up 11.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Collegium Pharmaceutical vs. Amphastar P
Performance |
| Timeline |
| Collegium Pharmaceutical |
| Amphastar P |
Collegium Pharmaceutical and Amphastar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collegium Pharmaceutical and Amphastar
The main advantage of trading using opposite Collegium Pharmaceutical and Amphastar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collegium Pharmaceutical 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.| Collegium Pharmaceutical vs. Phibro Animal Health | Collegium Pharmaceutical vs. ANI Pharmaceuticals | Collegium Pharmaceutical vs. Procaps Group SA | Collegium Pharmaceutical vs. Amphastar P |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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