Correlation Between Amicus Therapeutics and Viatris
Can any of the company-specific risk be diversified away by investing in both Amicus Therapeutics and Viatris 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 Viatris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amicus Therapeutics and Viatris, you can compare the effects of market volatilities on Amicus Therapeutics and Viatris 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 Viatris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amicus Therapeutics and Viatris.
Diversification Opportunities for Amicus Therapeutics and Viatris
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amicus and Viatris is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Amicus Therapeutics and Viatris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viatris 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 Viatris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viatris has no effect on the direction of Amicus Therapeutics i.e., Amicus Therapeutics and Viatris go up and down completely randomly.
Pair Corralation between Amicus Therapeutics and Viatris
Given the investment horizon of 90 days Amicus Therapeutics is expected to under-perform the Viatris. In addition to that, Amicus Therapeutics is 1.49 times more volatile than Viatris. It trades about 0.0 of its total potential returns per unit of risk. Viatris is currently generating about 0.03 per unit of volatility. If you would invest 1,048 in Viatris on September 3, 2024 and sell it today you would earn a total of 261.00 from holding Viatris or generate 24.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amicus Therapeutics vs. Viatris
Performance |
| Timeline |
| Amicus Therapeutics |
| Viatris |
Amicus Therapeutics and Viatris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amicus Therapeutics and Viatris
The main advantage of trading using opposite Amicus Therapeutics and Viatris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amicus Therapeutics position performs unexpectedly, Viatris 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 Viatris will offset losses from the drop in Viatris' long position.| Amicus Therapeutics vs. Incyte | Amicus Therapeutics vs. Denali Therapeutics | Amicus Therapeutics vs. argenx NV ADR | Amicus Therapeutics vs. Harmony Biosciences Holdings |
| Viatris vs. Catalent | Viatris vs. Bausch Health Companies | Viatris vs. Tilray Inc | Viatris 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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