Correlation Between Copper 360 and Ascendis Health
Can any of the company-specific risk be diversified away by investing in both Copper 360 and Ascendis Health 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 Copper 360 and Ascendis Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Copper 360 and Ascendis Health, you can compare the effects of market volatilities on Copper 360 and Ascendis Health 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 Copper 360 with a short position of Ascendis Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copper 360 and Ascendis Health.
Diversification Opportunities for Copper 360 and Ascendis Health
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Copper and Ascendis is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Copper 360 and Ascendis Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Health and Copper 360 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 Copper 360 are associated (or correlated) with Ascendis Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Health has no effect on the direction of Copper 360 i.e., Copper 360 and Ascendis Health go up and down completely randomly.
Pair Corralation between Copper 360 and Ascendis Health
Assuming the 90 days trading horizon Copper 360 is expected to under-perform the Ascendis Health. But the stock apears to be less risky and, when comparing its historical volatility, Copper 360 is 1.28 times less risky than Ascendis Health. The stock trades about -0.16 of its potential returns per unit of risk. The Ascendis Health is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,200 in Ascendis Health on September 2, 2024 and sell it today you would earn a total of 300.00 from holding Ascendis Health or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copper 360 vs. Ascendis Health
Performance |
| Timeline |
| Copper 360 |
| Ascendis Health |
Copper 360 and Ascendis Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copper 360 and Ascendis Health
The main advantage of trading using opposite Copper 360 and Ascendis Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copper 360 position performs unexpectedly, Ascendis Health 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 Ascendis Health will offset losses from the drop in Ascendis Health's long position.| Copper 360 vs. Advtech | Copper 360 vs. Reinet Investments SCA | Copper 360 vs. Lesaka Technologies | Copper 360 vs. Zeder Investments |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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