Correlation Between Eagle Pharmaceuticals and Regional Health
Can any of the company-specific risk be diversified away by investing in both Eagle Pharmaceuticals and Regional 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 Eagle Pharmaceuticals and Regional Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Pharmaceuticals and Regional Health Properties, you can compare the effects of market volatilities on Eagle Pharmaceuticals and Regional 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 Eagle Pharmaceuticals with a short position of Regional Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Pharmaceuticals and Regional Health.
Diversification Opportunities for Eagle Pharmaceuticals and Regional Health
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eagle and Regional is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Pharmaceuticals and Regional Health Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Health Prop 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 Regional Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Health Prop has no effect on the direction of Eagle Pharmaceuticals i.e., Eagle Pharmaceuticals and Regional Health go up and down completely randomly.
Pair Corralation between Eagle Pharmaceuticals and Regional Health
Given the investment horizon of 90 days Eagle Pharmaceuticals is expected to under-perform the Regional Health. But the pink sheet apears to be less risky and, when comparing its historical volatility, Eagle Pharmaceuticals is 1.4 times less risky than Regional Health. The pink sheet trades about -0.29 of its potential returns per unit of risk. The Regional Health Properties is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Regional Health Properties on September 12, 2024 and sell it today you would lose (1.00) from holding Regional Health Properties or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 26.56% |
| Values | Daily Returns |
Eagle Pharmaceuticals vs. Regional Health Properties
Performance |
| Timeline |
| Eagle Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Regional Health Prop |
Eagle Pharmaceuticals and Regional Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Pharmaceuticals and Regional Health
The main advantage of trading using opposite Eagle Pharmaceuticals and Regional Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Pharmaceuticals position performs unexpectedly, Regional 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 Regional Health will offset losses from the drop in Regional Health'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 |
| Regional Health vs. Regional Health Properties | Regional Health vs. Sotherly Hotels Pref | Regional Health vs. Ashford Hospitality Trust | Regional Health vs. Pacific Gas and |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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