Correlation Between Santhera Pharmaceuticals and Meyer Burger
Can any of the company-specific risk be diversified away by investing in both Santhera Pharmaceuticals and Meyer Burger 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 Meyer Burger 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 Meyer Burger Tech, you can compare the effects of market volatilities on Santhera Pharmaceuticals and Meyer Burger 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 Meyer Burger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santhera Pharmaceuticals and Meyer Burger.
Diversification Opportunities for Santhera Pharmaceuticals and Meyer Burger
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Santhera and Meyer is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Santhera Pharmaceuticals Holdi and Meyer Burger Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meyer Burger Tech 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 Meyer Burger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meyer Burger Tech has no effect on the direction of Santhera Pharmaceuticals i.e., Santhera Pharmaceuticals and Meyer Burger go up and down completely randomly.
Pair Corralation between Santhera Pharmaceuticals and Meyer Burger
Assuming the 90 days trading horizon Santhera Pharmaceuticals Holding is expected to generate 0.13 times more return on investment than Meyer Burger. However, Santhera Pharmaceuticals Holding is 7.71 times less risky than Meyer Burger. It trades about -0.26 of its potential returns per unit of risk. Meyer Burger Tech is currently generating about -0.27 per unit of risk. If you would invest 903.00 in Santhera Pharmaceuticals Holding on August 25, 2024 and sell it today you would lose (103.00) from holding Santhera Pharmaceuticals Holding or give up 11.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santhera Pharmaceuticals Holdi vs. Meyer Burger Tech
Performance |
| Timeline |
| Santhera Pharmaceuticals |
| Meyer Burger Tech |
Santhera Pharmaceuticals and Meyer Burger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santhera Pharmaceuticals and Meyer Burger
The main advantage of trading using opposite Santhera Pharmaceuticals and Meyer Burger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santhera Pharmaceuticals position performs unexpectedly, Meyer Burger 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 Meyer Burger will offset losses from the drop in Meyer Burger'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 |
| Meyer Burger vs. Santhera Pharmaceuticals Holding | Meyer Burger vs. Newron Pharmaceuticals SpA | Meyer Burger vs. Basilea Pharmaceutica AG | Meyer Burger 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |