Correlation Between Petros Pharmaceuticals and Acorda Therapeutics
Can any of the company-specific risk be diversified away by investing in both Petros Pharmaceuticals and Acorda 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 Petros Pharmaceuticals and Acorda Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petros Pharmaceuticals and Acorda Therapeutics, you can compare the effects of market volatilities on Petros Pharmaceuticals and Acorda 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 Petros Pharmaceuticals with a short position of Acorda Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petros Pharmaceuticals and Acorda Therapeutics.
Diversification Opportunities for Petros Pharmaceuticals and Acorda Therapeutics
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Petros and Acorda is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Petros Pharmaceuticals and Acorda Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acorda Therapeutics and Petros Pharmaceuticals 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 Petros Pharmaceuticals are associated (or correlated) with Acorda Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acorda Therapeutics has no effect on the direction of Petros Pharmaceuticals i.e., Petros Pharmaceuticals and Acorda Therapeutics go up and down completely randomly.
Pair Corralation between Petros Pharmaceuticals and Acorda Therapeutics
Given the investment horizon of 90 days Petros Pharmaceuticals is expected to generate 1.7 times less return on investment than Acorda Therapeutics. In addition to that, Petros Pharmaceuticals is 2.05 times more volatile than Acorda Therapeutics. It trades about 0.01 of its total potential returns per unit of risk. Acorda Therapeutics is currently generating about 0.04 per unit of volatility. If you would invest 1,545 in Acorda Therapeutics on August 28, 2024 and sell it today you would earn a total of 75.00 from holding Acorda Therapeutics or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.78% |
| Values | Daily Returns |
Petros Pharmaceuticals vs. Acorda Therapeutics
Performance |
| Timeline |
| Petros Pharmaceuticals |
| Acorda Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Petros Pharmaceuticals and Acorda Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petros Pharmaceuticals and Acorda Therapeutics
The main advantage of trading using opposite Petros Pharmaceuticals and Acorda Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petros Pharmaceuticals position performs unexpectedly, Acorda 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 Acorda Therapeutics will offset losses from the drop in Acorda Therapeutics' long position.| Petros Pharmaceuticals vs. Eliem Therapeutics | Petros Pharmaceuticals vs. Scpharmaceuticals | Petros Pharmaceuticals vs. Milestone Pharmaceuticals | Petros Pharmaceuticals vs. Seres Therapeutics |
| Acorda Therapeutics vs. Shionogi Co | Acorda Therapeutics vs. Pacira BioSciences, | Acorda Therapeutics vs. Sunshine Biopharma Warrant | Acorda Therapeutics vs. Biofrontera |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |