Correlation Between Santhera Pharmaceuticals and Alpine Select
Can any of the company-specific risk be diversified away by investing in both Santhera Pharmaceuticals and Alpine Select 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 Santhera Pharmaceuticals and Alpine Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santhera Pharmaceuticals Holding and Alpine Select AG, you can compare the effects of market volatilities on Santhera Pharmaceuticals and Alpine Select 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 Santhera Pharmaceuticals with a short position of Alpine Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santhera Pharmaceuticals and Alpine Select.
Diversification Opportunities for Santhera Pharmaceuticals and Alpine Select
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Santhera and Alpine is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Santhera Pharmaceuticals Holdi and Alpine Select AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Select AG and Santhera 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 Santhera Pharmaceuticals Holding are associated (or correlated) with Alpine Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Select AG has no effect on the direction of Santhera Pharmaceuticals i.e., Santhera Pharmaceuticals and Alpine Select go up and down completely randomly.
Pair Corralation between Santhera Pharmaceuticals and Alpine Select
Assuming the 90 days trading horizon Santhera Pharmaceuticals Holding is expected to under-perform the Alpine Select. In addition to that, Santhera Pharmaceuticals is 1.65 times more volatile than Alpine Select AG. It trades about -0.02 of its total potential returns per unit of risk. Alpine Select AG is currently generating about -0.01 per unit of volatility. If you would invest 785.00 in Alpine Select AG on August 25, 2024 and sell it today you would lose (45.00) from holding Alpine Select AG or give up 5.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 67.25% |
| Values | Daily Returns |
Santhera Pharmaceuticals Holdi vs. Alpine Select AG
Performance |
| Timeline |
| Santhera Pharmaceuticals |
| Alpine Select AG |
Santhera Pharmaceuticals and Alpine Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santhera Pharmaceuticals and Alpine Select
The main advantage of trading using opposite Santhera Pharmaceuticals and Alpine Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santhera Pharmaceuticals position performs unexpectedly, Alpine Select 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 Alpine Select will offset losses from the drop in Alpine Select's long position.| Santhera Pharmaceuticals vs. Basilea Pharmaceutica AG | Santhera Pharmaceuticals vs. Idorsia | Santhera Pharmaceuticals vs. Newron Pharmaceuticals SpA | Santhera Pharmaceuticals vs. Evolva Holding SA |
| Alpine Select vs. Santhera Pharmaceuticals Holding | Alpine Select vs. Newron Pharmaceuticals SpA | Alpine Select vs. Basilea Pharmaceutica AG | Alpine Select vs. Evolva Holding SA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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