Correlation Between Lifecore Biomedical and Collegium Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Lifecore Biomedical 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 Lifecore Biomedical and Collegium Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifecore Biomedical and Collegium Pharmaceutical, you can compare the effects of market volatilities on Lifecore Biomedical 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 Lifecore Biomedical with a short position of Collegium Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifecore Biomedical and Collegium Pharmaceutical.
Diversification Opportunities for Lifecore Biomedical and Collegium Pharmaceutical
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lifecore and Collegium is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lifecore Biomedical and Collegium Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collegium Pharmaceutical and Lifecore Biomedical 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 Lifecore Biomedical 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 Lifecore Biomedical i.e., Lifecore Biomedical and Collegium Pharmaceutical go up and down completely randomly.
Pair Corralation between Lifecore Biomedical and Collegium Pharmaceutical
Given the investment horizon of 90 days Lifecore Biomedical is expected to generate 1.72 times more return on investment than Collegium Pharmaceutical. However, Lifecore Biomedical is 1.72 times more volatile than Collegium Pharmaceutical. It trades about 0.02 of its potential returns per unit of risk. Collegium Pharmaceutical is currently generating about 0.0 per unit of risk. If you would invest 599.00 in Lifecore Biomedical on November 3, 2024 and sell it today you would lose (5.00) from holding Lifecore Biomedical or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifecore Biomedical vs. Collegium Pharmaceutical
Performance |
| Timeline |
| Lifecore Biomedical |
| Collegium Pharmaceutical |
Lifecore Biomedical and Collegium Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifecore Biomedical and Collegium Pharmaceutical
The main advantage of trading using opposite Lifecore Biomedical and Collegium Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifecore Biomedical 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.| Lifecore Biomedical vs. Shuttle Pharmaceuticals | Lifecore Biomedical vs. Tilray Inc | Lifecore Biomedical vs. Kamada | Lifecore Biomedical vs. Cumberland Pharmaceuticals |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world |