Correlation Between Eagle Pharmaceuticals and Biotricity
Can any of the company-specific risk be diversified away by investing in both Eagle Pharmaceuticals and Biotricity 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 Eagle Pharmaceuticals and Biotricity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Pharmaceuticals and Biotricity, you can compare the effects of market volatilities on Eagle Pharmaceuticals and Biotricity 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 Eagle Pharmaceuticals with a short position of Biotricity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Pharmaceuticals and Biotricity.
Diversification Opportunities for Eagle Pharmaceuticals and Biotricity
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eagle and Biotricity is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Pharmaceuticals and Biotricity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biotricity and Eagle Pharmaceuticals 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 Eagle Pharmaceuticals are associated (or correlated) with Biotricity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biotricity has no effect on the direction of Eagle Pharmaceuticals i.e., Eagle Pharmaceuticals and Biotricity go up and down completely randomly.
Pair Corralation between Eagle Pharmaceuticals and Biotricity
If you would invest (100.00) in Biotricity on November 2, 2024 and sell it today you would earn a total of 100.00 from holding Biotricity or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eagle Pharmaceuticals vs. Biotricity
Performance |
| Timeline |
| Eagle Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Biotricity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eagle Pharmaceuticals and Biotricity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Pharmaceuticals and Biotricity
The main advantage of trading using opposite Eagle Pharmaceuticals and Biotricity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Pharmaceuticals position performs unexpectedly, Biotricity 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 Biotricity will offset losses from the drop in Biotricity's long position.| Eagle Pharmaceuticals vs. ANI Pharmaceuticals | Eagle Pharmaceuticals vs. Phibro Animal Health | Eagle Pharmaceuticals vs. Prestige Brand Holdings | Eagle Pharmaceuticals vs. Collegium Pharmaceutical |
| Biotricity vs. CVRx Inc | Biotricity vs. Bone Biologics Corp | Biotricity vs. Delcath Systems | Biotricity vs. Heart Test Laboratories |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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