Correlation Between OptiNose and Eagle Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both OptiNose and Eagle 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 OptiNose and Eagle Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OptiNose and Eagle Pharmaceuticals, you can compare the effects of market volatilities on OptiNose and Eagle 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 OptiNose with a short position of Eagle Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of OptiNose and Eagle Pharmaceuticals.
Diversification Opportunities for OptiNose and Eagle Pharmaceuticals
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OptiNose and Eagle is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding OptiNose and Eagle Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Pharmaceuticals and OptiNose 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 OptiNose are associated (or correlated) with Eagle Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Pharmaceuticals has no effect on the direction of OptiNose i.e., OptiNose and Eagle Pharmaceuticals go up and down completely randomly.
Pair Corralation between OptiNose and Eagle Pharmaceuticals
Given the investment horizon of 90 days OptiNose is expected to generate 0.93 times more return on investment than Eagle Pharmaceuticals. However, OptiNose is 1.08 times less risky than Eagle Pharmaceuticals. It trades about -0.04 of its potential returns per unit of risk. Eagle Pharmaceuticals is currently generating about -0.1 per unit of risk. If you would invest 174.00 in OptiNose on August 27, 2024 and sell it today you would lose (126.00) from holding OptiNose or give up 72.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 92.09% |
| Values | Daily Returns |
OptiNose vs. Eagle Pharmaceuticals
Performance |
| Timeline |
| OptiNose |
| Eagle Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OptiNose and Eagle Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OptiNose and Eagle Pharmaceuticals
The main advantage of trading using opposite OptiNose and Eagle Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OptiNose position performs unexpectedly, Eagle 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 Eagle Pharmaceuticals will offset losses from the drop in Eagle Pharmaceuticals' long position.| OptiNose vs. Collegium Pharmaceutical | OptiNose vs. Phibro Animal Health | OptiNose vs. ANI Pharmaceuticals | OptiNose vs. Procaps Group SA |
| Eagle Pharmaceuticals vs. ANI Pharmaceuticals | Eagle Pharmaceuticals vs. Phibro Animal Health | Eagle Pharmaceuticals vs. Prestige Brand Holdings | Eagle Pharmaceuticals vs. Collegium Pharmaceutical |
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.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |