Correlation Between Prestige Brand and Assertio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Prestige Brand and Assertio 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 Prestige Brand and Assertio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prestige Brand Holdings and Assertio Therapeutics, you can compare the effects of market volatilities on Prestige Brand and Assertio 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 Prestige Brand with a short position of Assertio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prestige Brand and Assertio Therapeutics.
Diversification Opportunities for Prestige Brand and Assertio Therapeutics
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Prestige and Assertio is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Prestige Brand Holdings and Assertio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assertio Therapeutics and Prestige Brand 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 Prestige Brand Holdings are associated (or correlated) with Assertio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assertio Therapeutics has no effect on the direction of Prestige Brand i.e., Prestige Brand and Assertio Therapeutics go up and down completely randomly.
Pair Corralation between Prestige Brand and Assertio Therapeutics
Considering the 90-day investment horizon Prestige Brand Holdings is expected to generate 0.2 times more return on investment than Assertio Therapeutics. However, Prestige Brand Holdings is 4.89 times less risky than Assertio Therapeutics. It trades about 0.51 of its potential returns per unit of risk. Assertio Therapeutics is currently generating about 0.01 per unit of risk. If you would invest 7,405 in Prestige Brand Holdings on September 2, 2024 and sell it today you would earn a total of 1,072 from holding Prestige Brand Holdings or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prestige Brand Holdings vs. Assertio Therapeutics
Performance |
| Timeline |
| Prestige Brand Holdings |
| Assertio Therapeutics |
Prestige Brand and Assertio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prestige Brand and Assertio Therapeutics
The main advantage of trading using opposite Prestige Brand and Assertio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prestige Brand position performs unexpectedly, Assertio 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 Assertio Therapeutics will offset losses from the drop in Assertio Therapeutics' long position.| Prestige Brand vs. Crinetics Pharmaceuticals | Prestige Brand vs. Enanta Pharmaceuticals | Prestige Brand vs. Amicus Therapeutics | Prestige Brand vs. Connect Biopharma Holdings |
| Assertio Therapeutics vs. Amneal Pharmaceuticals, Class | Assertio Therapeutics vs. Lifecore Biomedical | Assertio Therapeutics vs. Ironwood Pharmaceuticals | Assertio Therapeutics vs. Neurocrine Biosciences |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |