Correlation Between Pacira BioSciences, and Supernus Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Pacira BioSciences, and Supernus 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 Pacira BioSciences, and Supernus Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacira BioSciences, and Supernus Pharmaceuticals, you can compare the effects of market volatilities on Pacira BioSciences, and Supernus 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 Pacira BioSciences, with a short position of Supernus Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacira BioSciences, and Supernus Pharmaceuticals.
Diversification Opportunities for Pacira BioSciences, and Supernus Pharmaceuticals
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pacira and Supernus is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Pacira BioSciences, and Supernus Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supernus Pharmaceuticals and Pacira BioSciences, 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 Pacira BioSciences, are associated (or correlated) with Supernus Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supernus Pharmaceuticals has no effect on the direction of Pacira BioSciences, i.e., Pacira BioSciences, and Supernus Pharmaceuticals go up and down completely randomly.
Pair Corralation between Pacira BioSciences, and Supernus Pharmaceuticals
Given the investment horizon of 90 days Pacira BioSciences, is expected to under-perform the Supernus Pharmaceuticals. In addition to that, Pacira BioSciences, is 1.52 times more volatile than Supernus Pharmaceuticals. It trades about -0.04 of its total potential returns per unit of risk. Supernus Pharmaceuticals is currently generating about 0.01 per unit of volatility. If you would invest 3,561 in Supernus Pharmaceuticals on August 24, 2024 and sell it today you would earn a total of 61.00 from holding Supernus Pharmaceuticals or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacira BioSciences, vs. Supernus Pharmaceuticals
Performance |
| Timeline |
| Pacira BioSciences, |
| Supernus Pharmaceuticals |
Pacira BioSciences, and Supernus Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacira BioSciences, and Supernus Pharmaceuticals
The main advantage of trading using opposite Pacira BioSciences, and Supernus Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacira BioSciences, position performs unexpectedly, Supernus 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 Supernus Pharmaceuticals will offset losses from the drop in Supernus Pharmaceuticals' long position.| Pacira BioSciences, vs. Phibro Animal Health | Pacira BioSciences, vs. Dr Reddys Laboratories | Pacira BioSciences, vs. Collegium Pharmaceutical | Pacira BioSciences, vs. Prestige Brand Holdings |
| Supernus Pharmaceuticals vs. Prestige Brand Holdings | Supernus Pharmaceuticals vs. Evotec SE ADR | Supernus Pharmaceuticals vs. Collegium Pharmaceutical | Supernus Pharmaceuticals vs. ANI Pharmaceuticals |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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