Correlation Between Collegium Pharmaceutical and Lucy Scientific
Can any of the company-specific risk be diversified away by investing in both Collegium Pharmaceutical and Lucy Scientific 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 Lucy Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collegium Pharmaceutical and Lucy Scientific Discovery, you can compare the effects of market volatilities on Collegium Pharmaceutical and Lucy Scientific 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 Lucy Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collegium Pharmaceutical and Lucy Scientific.
Diversification Opportunities for Collegium Pharmaceutical and Lucy Scientific
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Collegium and Lucy is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Collegium Pharmaceutical and Lucy Scientific Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucy Scientific Discovery 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 Lucy Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucy Scientific Discovery has no effect on the direction of Collegium Pharmaceutical i.e., Collegium Pharmaceutical and Lucy Scientific go up and down completely randomly.
Pair Corralation between Collegium Pharmaceutical and Lucy Scientific
If you would invest 2.00 in Lucy Scientific Discovery on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Lucy Scientific Discovery or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Collegium Pharmaceutical vs. Lucy Scientific Discovery
Performance |
| Timeline |
| Collegium Pharmaceutical |
| Lucy Scientific Discovery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Collegium Pharmaceutical and Lucy Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collegium Pharmaceutical and Lucy Scientific
The main advantage of trading using opposite Collegium Pharmaceutical and Lucy Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collegium Pharmaceutical position performs unexpectedly, Lucy Scientific 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 Lucy Scientific will offset losses from the drop in Lucy Scientific'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 |
| Lucy Scientific vs. Shuttle Pharmaceuticals | Lucy Scientific vs. Lifecore Biomedical | Lucy Scientific vs. Journey Medical Corp | Lucy Scientific vs. Akanda 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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