Correlation Between Evolva Holding and Santhera Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Evolva Holding and Santhera Pharmaceuticals 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 Evolva Holding and Santhera Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolva Holding SA and Santhera Pharmaceuticals Holding, you can compare the effects of market volatilities on Evolva Holding and Santhera Pharmaceuticals 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 Evolva Holding with a short position of Santhera Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolva Holding and Santhera Pharmaceuticals.
Diversification Opportunities for Evolva Holding and Santhera Pharmaceuticals
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Evolva and Santhera is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Evolva Holding SA and Santhera Pharmaceuticals Holdi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santhera Pharmaceuticals and Evolva Holding 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 Evolva Holding SA are associated (or correlated) with Santhera Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santhera Pharmaceuticals has no effect on the direction of Evolva Holding i.e., Evolva Holding and Santhera Pharmaceuticals go up and down completely randomly.
Pair Corralation between Evolva Holding and Santhera Pharmaceuticals
Assuming the 90 days trading horizon Evolva Holding SA is expected to generate 2.87 times more return on investment than Santhera Pharmaceuticals. However, Evolva Holding is 2.87 times more volatile than Santhera Pharmaceuticals Holding. It trades about 0.1 of its potential returns per unit of risk. Santhera Pharmaceuticals Holding is currently generating about -0.26 per unit of risk. If you would invest 80.00 in Evolva Holding SA on August 25, 2024 and sell it today you would earn a total of 8.00 from holding Evolva Holding SA or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolva Holding SA vs. Santhera Pharmaceuticals Holdi
Performance |
| Timeline |
| Evolva Holding SA |
| Santhera Pharmaceuticals |
Evolva Holding and Santhera Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolva Holding and Santhera Pharmaceuticals
The main advantage of trading using opposite Evolva Holding and Santhera Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolva Holding position performs unexpectedly, Santhera Pharmaceuticals 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 Santhera Pharmaceuticals will offset losses from the drop in Santhera Pharmaceuticals' long position.| Evolva Holding vs. Santhera Pharmaceuticals Holding | Evolva Holding vs. Basilea Pharmaceutica AG | Evolva Holding vs. Meyer Burger Tech | Evolva Holding vs. Newron Pharmaceuticals SpA |
| Santhera Pharmaceuticals vs. Basilea Pharmaceutica AG | Santhera Pharmaceuticals vs. Idorsia | Santhera Pharmaceuticals vs. Newron Pharmaceuticals SpA | Santhera Pharmaceuticals vs. Evolva Holding SA |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |