Correlation Between Oasmia Pharmaceutical and Acorda Therapeutics
Can any of the company-specific risk be diversified away by investing in both Oasmia Pharmaceutical and Acorda Therapeutics 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 Oasmia Pharmaceutical and Acorda Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasmia Pharmaceutical AB and Acorda Therapeutics, you can compare the effects of market volatilities on Oasmia Pharmaceutical and Acorda Therapeutics 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 Oasmia Pharmaceutical with a short position of Acorda Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasmia Pharmaceutical and Acorda Therapeutics.
Diversification Opportunities for Oasmia Pharmaceutical and Acorda Therapeutics
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oasmia and Acorda is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Oasmia Pharmaceutical AB and Acorda Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acorda Therapeutics and Oasmia Pharmaceutical 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 Oasmia Pharmaceutical AB are associated (or correlated) with Acorda Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acorda Therapeutics has no effect on the direction of Oasmia Pharmaceutical i.e., Oasmia Pharmaceutical and Acorda Therapeutics go up and down completely randomly.
Pair Corralation between Oasmia Pharmaceutical and Acorda Therapeutics
Assuming the 90 days horizon Oasmia Pharmaceutical is expected to generate 6.75 times less return on investment than Acorda Therapeutics. In addition to that, Oasmia Pharmaceutical is 3.01 times more volatile than Acorda Therapeutics. It trades about 0.0 of its total potential returns per unit of risk. Acorda Therapeutics is currently generating about 0.06 per unit of volatility. If you would invest 1,121 in Acorda Therapeutics on August 29, 2024 and sell it today you would earn a total of 499.00 from holding Acorda Therapeutics or generate 44.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 26.92% |
| Values | Daily Returns |
Oasmia Pharmaceutical AB vs. Acorda Therapeutics
Performance |
| Timeline |
| Oasmia Pharmaceutical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Acorda Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oasmia Pharmaceutical and Acorda Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasmia Pharmaceutical and Acorda Therapeutics
The main advantage of trading using opposite Oasmia Pharmaceutical and Acorda Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasmia Pharmaceutical position performs unexpectedly, Acorda Therapeutics 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 Acorda Therapeutics will offset losses from the drop in Acorda Therapeutics' long position.| Oasmia Pharmaceutical vs. Ryanair Holdings PLC | Oasmia Pharmaceutical vs. LENSAR Inc | Oasmia Pharmaceutical vs. Cumberland Pharmaceuticals | Oasmia Pharmaceutical vs. Finnair Oyj |
| Acorda Therapeutics vs. Shionogi Co | Acorda Therapeutics vs. Pacira BioSciences, | Acorda Therapeutics vs. Sunshine Biopharma Warrant | Acorda Therapeutics vs. Biofrontera |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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