Correlation Between Amicus Therapeutics and Tilray
Can any of the company-specific risk be diversified away by investing in both Amicus Therapeutics and Tilray 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 Amicus Therapeutics and Tilray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amicus Therapeutics and Tilray Inc, you can compare the effects of market volatilities on Amicus Therapeutics and Tilray 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 Amicus Therapeutics with a short position of Tilray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amicus Therapeutics and Tilray.
Diversification Opportunities for Amicus Therapeutics and Tilray
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amicus and Tilray is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Amicus Therapeutics and Tilray Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tilray Inc and Amicus Therapeutics 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 Amicus Therapeutics are associated (or correlated) with Tilray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tilray Inc has no effect on the direction of Amicus Therapeutics i.e., Amicus Therapeutics and Tilray go up and down completely randomly.
Pair Corralation between Amicus Therapeutics and Tilray
Given the investment horizon of 90 days Amicus Therapeutics is expected to generate 0.51 times more return on investment than Tilray. However, Amicus Therapeutics is 1.94 times less risky than Tilray. It trades about 0.0 of its potential returns per unit of risk. Tilray Inc is currently generating about -0.01 per unit of risk. If you would invest 1,191 in Amicus Therapeutics on September 12, 2024 and sell it today you would lose (175.50) from holding Amicus Therapeutics or give up 14.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amicus Therapeutics vs. Tilray Inc
Performance |
| Timeline |
| Amicus Therapeutics |
| Tilray Inc |
Amicus Therapeutics and Tilray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amicus Therapeutics and Tilray
The main advantage of trading using opposite Amicus Therapeutics and Tilray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amicus Therapeutics position performs unexpectedly, Tilray 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 Tilray will offset losses from the drop in Tilray's long position.| Amicus Therapeutics vs. Incyte | Amicus Therapeutics vs. Denali Therapeutics | Amicus Therapeutics vs. argenx NV ADR | Amicus Therapeutics vs. Harmony Biosciences Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |