Correlation Between NewAmsterdam Pharma and Aslan Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both NewAmsterdam Pharma and Aslan 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 NewAmsterdam Pharma and Aslan Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewAmsterdam Pharma and Aslan Pharmaceuticals, you can compare the effects of market volatilities on NewAmsterdam Pharma and Aslan 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 NewAmsterdam Pharma with a short position of Aslan Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewAmsterdam Pharma and Aslan Pharmaceuticals.
Diversification Opportunities for NewAmsterdam Pharma and Aslan Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NewAmsterdam and Aslan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NewAmsterdam Pharma and Aslan Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aslan Pharmaceuticals and NewAmsterdam 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 NewAmsterdam Pharma are associated (or correlated) with Aslan Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aslan Pharmaceuticals has no effect on the direction of NewAmsterdam Pharma i.e., NewAmsterdam Pharma and Aslan Pharmaceuticals go up and down completely randomly.
Pair Corralation between NewAmsterdam Pharma and Aslan Pharmaceuticals
Given the investment horizon of 90 days NewAmsterdam Pharma is expected to generate 0.41 times more return on investment than Aslan Pharmaceuticals. However, NewAmsterdam Pharma is 2.46 times less risky than Aslan Pharmaceuticals. It trades about 0.06 of its potential returns per unit of risk. Aslan Pharmaceuticals is currently generating about -0.03 per unit of risk. If you would invest 894.00 in NewAmsterdam Pharma on August 29, 2024 and sell it today you would earn a total of 1,190 from holding NewAmsterdam Pharma or generate 133.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 81.45% |
| Values | Daily Returns |
NewAmsterdam Pharma vs. Aslan Pharmaceuticals
Performance |
| Timeline |
| NewAmsterdam Pharma |
| Aslan Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NewAmsterdam Pharma and Aslan Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewAmsterdam Pharma and Aslan Pharmaceuticals
The main advantage of trading using opposite NewAmsterdam Pharma and Aslan Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewAmsterdam Pharma position performs unexpectedly, Aslan 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 Aslan Pharmaceuticals will offset losses from the drop in Aslan Pharmaceuticals' long position.| NewAmsterdam Pharma vs. Valneva SE ADR | NewAmsterdam Pharma vs. Bright Minds Biosciences | NewAmsterdam Pharma vs. HP Inc | NewAmsterdam Pharma vs. Intel |
| Aslan Pharmaceuticals vs. Monte Rosa Therapeutics | Aslan Pharmaceuticals vs. NewAmsterdam Pharma | Aslan Pharmaceuticals vs. Inventiva Sa | Aslan Pharmaceuticals vs. Cullinan Oncology LLC |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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