Correlation Between Collegium Pharmaceutical and Brinker International
Can any of the company-specific risk be diversified away by investing in both Collegium Pharmaceutical and Brinker International 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 Brinker International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collegium Pharmaceutical and Brinker International, you can compare the effects of market volatilities on Collegium Pharmaceutical and Brinker International 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 Brinker International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collegium Pharmaceutical and Brinker International.
Diversification Opportunities for Collegium Pharmaceutical and Brinker International
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Collegium and Brinker is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Collegium Pharmaceutical and Brinker International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinker International 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 Brinker International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinker International has no effect on the direction of Collegium Pharmaceutical i.e., Collegium Pharmaceutical and Brinker International go up and down completely randomly.
Pair Corralation between Collegium Pharmaceutical and Brinker International
Given the investment horizon of 90 days Collegium Pharmaceutical is expected to generate 5.43 times less return on investment than Brinker International. But when comparing it to its historical volatility, Collegium Pharmaceutical is 1.15 times less risky than Brinker International. It trades about 0.02 of its potential returns per unit of risk. Brinker International is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,797 in Brinker International on January 15, 2025 and sell it today you would earn a total of 10,967 from holding Brinker International or generate 288.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Collegium Pharmaceutical vs. Brinker International
Performance |
| Timeline |
| Collegium Pharmaceutical |
| Brinker International |
Collegium Pharmaceutical and Brinker International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collegium Pharmaceutical and Brinker International
The main advantage of trading using opposite Collegium Pharmaceutical and Brinker International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collegium Pharmaceutical position performs unexpectedly, Brinker International 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 Brinker International will offset losses from the drop in Brinker International'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 |
| Brinker International vs. Dennys Corp | Brinker International vs. Bloomin Brands | Brinker International vs. Jack In The | Brinker International vs. Dine Brands Global |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |