Correlation Between Luye Pharma and Astellas Pharma
Can any of the company-specific risk be diversified away by investing in both Luye Pharma and Astellas Pharma 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 Luye Pharma and Astellas Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luye Pharma Group and Astellas Pharma, you can compare the effects of market volatilities on Luye Pharma and Astellas Pharma 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 Luye Pharma with a short position of Astellas Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luye Pharma and Astellas Pharma.
Diversification Opportunities for Luye Pharma and Astellas Pharma
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Luye and Astellas is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Luye Pharma Group and Astellas Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astellas Pharma and Luye Pharma 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 Luye Pharma Group are associated (or correlated) with Astellas Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astellas Pharma has no effect on the direction of Luye Pharma i.e., Luye Pharma and Astellas Pharma go up and down completely randomly.
Pair Corralation between Luye Pharma and Astellas Pharma
If you would invest 34.00 in Luye Pharma Group on November 8, 2024 and sell it today you would earn a total of 0.00 from holding Luye Pharma Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Luye Pharma Group vs. Astellas Pharma
Performance |
| Timeline |
| Luye Pharma Group |
| Astellas Pharma |
Luye Pharma and Astellas Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luye Pharma and Astellas Pharma
The main advantage of trading using opposite Luye Pharma and Astellas Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luye Pharma position performs unexpectedly, Astellas Pharma 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 Astellas Pharma will offset losses from the drop in Astellas Pharma's long position.| Luye Pharma vs. Novartis AG ADR | Luye Pharma vs. AstraZeneca PLC ADR | Luye Pharma vs. GlaxoSmithKline PLC ADR | Luye Pharma vs. Roche Holding Ltd |
| Astellas Pharma vs. Bayer AG | Astellas Pharma vs. Chugai Pharmaceutical Co | Astellas Pharma vs. AstraZeneca PLC | Astellas Pharma vs. Astellas Pharma |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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