Correlation Between PetIQ and Eagle Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both PetIQ 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 PetIQ and Eagle Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PetIQ Inc and Eagle Pharmaceuticals, you can compare the effects of market volatilities on PetIQ 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 PetIQ with a short position of Eagle Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetIQ and Eagle Pharmaceuticals.
Diversification Opportunities for PetIQ and Eagle Pharmaceuticals
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetIQ and Eagle is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding PetIQ Inc and Eagle Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Pharmaceuticals and PetIQ 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 PetIQ Inc 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 PetIQ i.e., PetIQ and Eagle Pharmaceuticals go up and down completely randomly.
Pair Corralation between PetIQ and Eagle Pharmaceuticals
Given the investment horizon of 90 days PetIQ Inc is expected to generate 0.61 times more return on investment than Eagle Pharmaceuticals. However, PetIQ Inc is 1.64 times less risky than Eagle Pharmaceuticals. It trades about 0.09 of its potential returns per unit of risk. Eagle Pharmaceuticals is currently generating about -0.09 per unit of risk. If you would invest 1,317 in PetIQ Inc on August 27, 2024 and sell it today you would earn a total of 1,781 from holding PetIQ Inc or generate 135.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.74% |
| Values | Daily Returns |
PetIQ Inc vs. Eagle Pharmaceuticals
Performance |
| Timeline |
| PetIQ Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
| Eagle Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PetIQ and Eagle Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetIQ and Eagle Pharmaceuticals
The main advantage of trading using opposite PetIQ and Eagle Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetIQ 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.| PetIQ vs. Prestige Brand Holdings | PetIQ vs. Collegium Pharmaceutical | PetIQ vs. Regencell Bioscience Holdings | PetIQ vs. Pacira BioSciences, |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |