Correlation Between Intracellular and Collegium Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Intracellular and Collegium Pharmaceutical 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 Intracellular and Collegium Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intracellular Th and Collegium Pharmaceutical, you can compare the effects of market volatilities on Intracellular and Collegium Pharmaceutical 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 Intracellular with a short position of Collegium Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intracellular and Collegium Pharmaceutical.
Diversification Opportunities for Intracellular and Collegium Pharmaceutical
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intracellular and Collegium is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Intracellular Th and Collegium Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collegium Pharmaceutical and Intracellular 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 Intracellular Th are associated (or correlated) with Collegium Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collegium Pharmaceutical has no effect on the direction of Intracellular i.e., Intracellular and Collegium Pharmaceutical go up and down completely randomly.
Pair Corralation between Intracellular and Collegium Pharmaceutical
Given the investment horizon of 90 days Intracellular Th is expected to generate 1.05 times more return on investment than Collegium Pharmaceutical. However, Intracellular is 1.05 times more volatile than Collegium Pharmaceutical. It trades about 0.05 of its potential returns per unit of risk. Collegium Pharmaceutical is currently generating about -0.03 per unit of risk. If you would invest 6,952 in Intracellular Th on August 27, 2024 and sell it today you would earn a total of 1,617 from holding Intracellular Th or generate 23.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intracellular Th vs. Collegium Pharmaceutical
Performance |
| Timeline |
| Intracellular Th |
| Collegium Pharmaceutical |
Intracellular and Collegium Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intracellular and Collegium Pharmaceutical
The main advantage of trading using opposite Intracellular and Collegium Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intracellular position performs unexpectedly, Collegium Pharmaceutical 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 Collegium Pharmaceutical will offset losses from the drop in Collegium Pharmaceutical's long position.| Intracellular vs. Alkermes Plc | Intracellular vs. Ironwood Pharmaceuticals | Intracellular vs. Pacira BioSciences, | Intracellular vs. Collegium Pharmaceutical |
| Collegium Pharmaceutical vs. Phibro Animal Health | Collegium Pharmaceutical vs. ANI Pharmaceuticals | Collegium Pharmaceutical vs. Procaps Group SA | Collegium Pharmaceutical vs. Amphastar P |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |