Correlation Between Passage Bio and Ascendis Pharma
Can any of the company-specific risk be diversified away by investing in both Passage Bio and Ascendis 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 Passage Bio and Ascendis Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Passage Bio and Ascendis Pharma AS, you can compare the effects of market volatilities on Passage Bio and Ascendis 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 Passage Bio with a short position of Ascendis Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Passage Bio and Ascendis Pharma.
Diversification Opportunities for Passage Bio and Ascendis Pharma
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Passage and Ascendis is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Passage Bio and Ascendis Pharma AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Pharma AS and Passage Bio 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 Passage Bio are associated (or correlated) with Ascendis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Pharma AS has no effect on the direction of Passage Bio i.e., Passage Bio and Ascendis Pharma go up and down completely randomly.
Pair Corralation between Passage Bio and Ascendis Pharma
Given the investment horizon of 90 days Passage Bio is expected to generate 3.19 times more return on investment than Ascendis Pharma. However, Passage Bio is 3.19 times more volatile than Ascendis Pharma AS. It trades about 0.01 of its potential returns per unit of risk. Ascendis Pharma AS is currently generating about 0.0 per unit of risk. If you would invest 101.00 in Passage Bio on November 3, 2024 and sell it today you would lose (39.05) from holding Passage Bio or give up 38.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Passage Bio vs. Ascendis Pharma AS
Performance |
| Timeline |
| Passage Bio |
| Ascendis Pharma AS |
Passage Bio and Ascendis Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Passage Bio and Ascendis Pharma
The main advantage of trading using opposite Passage Bio and Ascendis Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Passage Bio position performs unexpectedly, Ascendis 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 Ascendis Pharma will offset losses from the drop in Ascendis Pharma's long position.| Passage Bio vs. Black Diamond Therapeutics | Passage Bio vs. Revolution Medicines | Passage Bio vs. Stoke Therapeutics | Passage Bio vs. Cabaletta Bio |
| Ascendis Pharma vs. Apellis Pharmaceuticals | Ascendis Pharma vs. Akero Therapeutics | Ascendis Pharma vs. Blueprint Medicines Corp | Ascendis Pharma vs. Replimune Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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