Correlation Between Sunshine Biopharma and Eagle Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Sunshine Biopharma 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 Sunshine Biopharma and Eagle Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunshine Biopharma Warrant and Eagle Pharmaceuticals, you can compare the effects of market volatilities on Sunshine Biopharma 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 Sunshine Biopharma with a short position of Eagle Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunshine Biopharma and Eagle Pharmaceuticals.
Diversification Opportunities for Sunshine Biopharma and Eagle Pharmaceuticals
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunshine and Eagle is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sunshine Biopharma Warrant and Eagle Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Pharmaceuticals and Sunshine Biopharma 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 Sunshine Biopharma Warrant 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 Sunshine Biopharma i.e., Sunshine Biopharma and Eagle Pharmaceuticals go up and down completely randomly.
Pair Corralation between Sunshine Biopharma and Eagle Pharmaceuticals
If you would invest 17.00 in Sunshine Biopharma Warrant on October 23, 2024 and sell it today you would earn a total of 3.00 from holding Sunshine Biopharma Warrant or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Sunshine Biopharma Warrant vs. Eagle Pharmaceuticals
Performance |
| Timeline |
| Sunshine Biopharma |
| Eagle Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sunshine Biopharma and Eagle Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunshine Biopharma and Eagle Pharmaceuticals
The main advantage of trading using opposite Sunshine Biopharma and Eagle Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunshine Biopharma 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.| Sunshine Biopharma vs. Sunshine Biopharma | Sunshine Biopharma vs. Thayer Ventures Acquisition | Sunshine Biopharma vs. Biofrontera Warrants | Sunshine Biopharma vs. Neurosense Therapeutics |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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