Correlation Between Meyer Burger and Santhera Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Meyer Burger and Santhera Pharmaceuticals 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 Meyer Burger and Santhera Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meyer Burger Tech and Santhera Pharmaceuticals Holding, you can compare the effects of market volatilities on Meyer Burger and Santhera Pharmaceuticals 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 Meyer Burger with a short position of Santhera Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meyer Burger and Santhera Pharmaceuticals.
Diversification Opportunities for Meyer Burger and Santhera Pharmaceuticals
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Meyer and Santhera is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Meyer Burger Tech and Santhera Pharmaceuticals Holdi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santhera Pharmaceuticals and Meyer Burger 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 Meyer Burger Tech are associated (or correlated) with Santhera Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santhera Pharmaceuticals has no effect on the direction of Meyer Burger i.e., Meyer Burger and Santhera Pharmaceuticals go up and down completely randomly.
Pair Corralation between Meyer Burger and Santhera Pharmaceuticals
Assuming the 90 days trading horizon Meyer Burger Tech is expected to under-perform the Santhera Pharmaceuticals. In addition to that, Meyer Burger is 7.58 times more volatile than Santhera Pharmaceuticals Holding. It trades about -0.1 of its total potential returns per unit of risk. Santhera Pharmaceuticals Holding is currently generating about -0.06 per unit of volatility. If you would invest 884.00 in Santhera Pharmaceuticals Holding on August 28, 2024 and sell it today you would lose (49.00) from holding Santhera Pharmaceuticals Holding or give up 5.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meyer Burger Tech vs. Santhera Pharmaceuticals Holdi
Performance |
| Timeline |
| Meyer Burger Tech |
| Santhera Pharmaceuticals |
Meyer Burger and Santhera Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meyer Burger and Santhera Pharmaceuticals
The main advantage of trading using opposite Meyer Burger and Santhera Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meyer Burger position performs unexpectedly, Santhera Pharmaceuticals 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 Santhera Pharmaceuticals will offset losses from the drop in Santhera Pharmaceuticals' long position.| Meyer Burger vs. Santhera Pharmaceuticals Holding | Meyer Burger vs. Newron Pharmaceuticals SpA | Meyer Burger vs. Basilea Pharmaceutica AG | Meyer Burger vs. Evolva Holding SA |
| Santhera Pharmaceuticals vs. Basilea Pharmaceutica AG | Santhera Pharmaceuticals vs. Idorsia | Santhera Pharmaceuticals vs. Newron Pharmaceuticals SpA | Santhera Pharmaceuticals vs. Evolva Holding SA |
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
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| 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 | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |