Correlation Between Emergent Biosolutions and Lantheus Holdings
Can any of the company-specific risk be diversified away by investing in both Emergent Biosolutions and Lantheus Holdings 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 Emergent Biosolutions and Lantheus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emergent Biosolutions and Lantheus Holdings, you can compare the effects of market volatilities on Emergent Biosolutions and Lantheus Holdings 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 Emergent Biosolutions with a short position of Lantheus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emergent Biosolutions and Lantheus Holdings.
Diversification Opportunities for Emergent Biosolutions and Lantheus Holdings
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Emergent and Lantheus is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Emergent Biosolutions and Lantheus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lantheus Holdings and Emergent Biosolutions 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 Emergent Biosolutions are associated (or correlated) with Lantheus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lantheus Holdings has no effect on the direction of Emergent Biosolutions i.e., Emergent Biosolutions and Lantheus Holdings go up and down completely randomly.
Pair Corralation between Emergent Biosolutions and Lantheus Holdings
Considering the 90-day investment horizon Emergent Biosolutions is expected to generate 1.36 times more return on investment than Lantheus Holdings. However, Emergent Biosolutions is 1.36 times more volatile than Lantheus Holdings. It trades about 0.05 of its potential returns per unit of risk. Lantheus Holdings is currently generating about -0.13 per unit of risk. If you would invest 967.00 in Emergent Biosolutions on August 28, 2024 and sell it today you would earn a total of 18.00 from holding Emergent Biosolutions or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emergent Biosolutions vs. Lantheus Holdings
Performance |
| Timeline |
| Emergent Biosolutions |
| Lantheus Holdings |
Emergent Biosolutions and Lantheus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emergent Biosolutions and Lantheus Holdings
The main advantage of trading using opposite Emergent Biosolutions and Lantheus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emergent Biosolutions position performs unexpectedly, Lantheus Holdings 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 Lantheus Holdings will offset losses from the drop in Lantheus Holdings' long position.| Emergent Biosolutions vs. Zoetis Inc | Emergent Biosolutions vs. Bausch Health Companies | Emergent Biosolutions vs. Neurocrine Biosciences | Emergent Biosolutions vs. Akanda Corp |
| Lantheus Holdings vs. Neurocrine Biosciences | Lantheus Holdings vs. Ironwood Pharmaceuticals | Lantheus Holdings vs. Alkermes Plc | Lantheus Holdings vs. Avadel Pharmaceuticals PLC |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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