Correlation Between Estrella Immunopharma and Haleon Plc
Can any of the company-specific risk be diversified away by investing in both Estrella Immunopharma and Haleon Plc 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 Estrella Immunopharma and Haleon Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Estrella Immunopharma and Haleon plc, you can compare the effects of market volatilities on Estrella Immunopharma and Haleon Plc 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 Estrella Immunopharma with a short position of Haleon Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estrella Immunopharma and Haleon Plc.
Diversification Opportunities for Estrella Immunopharma and Haleon Plc
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Estrella and Haleon is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Estrella Immunopharma and Haleon plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haleon plc and Estrella Immunopharma 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 Estrella Immunopharma are associated (or correlated) with Haleon Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haleon plc has no effect on the direction of Estrella Immunopharma i.e., Estrella Immunopharma and Haleon Plc go up and down completely randomly.
Pair Corralation between Estrella Immunopharma and Haleon Plc
Assuming the 90 days horizon Estrella Immunopharma is expected to generate 46.92 times more return on investment than Haleon Plc. However, Estrella Immunopharma is 46.92 times more volatile than Haleon plc. It trades about 0.23 of its potential returns per unit of risk. Haleon plc is currently generating about -0.18 per unit of risk. If you would invest 6.43 in Estrella Immunopharma on August 30, 2024 and sell it today you would earn a total of 2.67 from holding Estrella Immunopharma or generate 41.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 27.27% |
| Values | Daily Returns |
Estrella Immunopharma vs. Haleon plc
Performance |
| Timeline |
| Estrella Immunopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Haleon plc |
Estrella Immunopharma and Haleon Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estrella Immunopharma and Haleon Plc
The main advantage of trading using opposite Estrella Immunopharma and Haleon Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estrella Immunopharma position performs unexpectedly, Haleon Plc 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 Haleon Plc will offset losses from the drop in Haleon Plc's long position.| Estrella Immunopharma vs. Ikena Oncology | Estrella Immunopharma vs. Eliem Therapeutics | Estrella Immunopharma vs. HCW Biologics | Estrella Immunopharma vs. RenovoRx |
| Haleon Plc vs. Teva Pharma Industries | Haleon Plc vs. Bausch Health Companies | Haleon Plc vs. Zoetis Inc | Haleon Plc vs. Takeda Pharmaceutical Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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