Correlation Between SIGA Technologies and Phibro Animal
Can any of the company-specific risk be diversified away by investing in both SIGA Technologies and Phibro Animal 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 SIGA Technologies and Phibro Animal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIGA Technologies and Phibro Animal Health, you can compare the effects of market volatilities on SIGA Technologies and Phibro Animal 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 SIGA Technologies with a short position of Phibro Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIGA Technologies and Phibro Animal.
Diversification Opportunities for SIGA Technologies and Phibro Animal
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SIGA and Phibro is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding SIGA Technologies and Phibro Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phibro Animal Health and SIGA Technologies 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 SIGA Technologies are associated (or correlated) with Phibro Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phibro Animal Health has no effect on the direction of SIGA Technologies i.e., SIGA Technologies and Phibro Animal go up and down completely randomly.
Pair Corralation between SIGA Technologies and Phibro Animal
Given the investment horizon of 90 days SIGA Technologies is expected to under-perform the Phibro Animal. In addition to that, SIGA Technologies is 1.54 times more volatile than Phibro Animal Health. It trades about -0.05 of its total potential returns per unit of risk. Phibro Animal Health is currently generating about 0.01 per unit of volatility. If you would invest 2,382 in Phibro Animal Health on August 24, 2024 and sell it today you would lose (6.00) from holding Phibro Animal Health or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIGA Technologies vs. Phibro Animal Health
Performance |
| Timeline |
| SIGA Technologies |
| Phibro Animal Health |
SIGA Technologies and Phibro Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIGA Technologies and Phibro Animal
The main advantage of trading using opposite SIGA Technologies and Phibro Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIGA Technologies position performs unexpectedly, Phibro Animal 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 Phibro Animal will offset losses from the drop in Phibro Animal's long position.| SIGA Technologies vs. Elanco Animal Health | SIGA Technologies vs. Esperion Therapeutics | SIGA Technologies vs. Catalent | SIGA Technologies vs. China Pharma Holdings |
| Phibro Animal vs. Pacira BioSciences, | Phibro Animal vs. Dr Reddys Laboratories | Phibro Animal vs. Collegium Pharmaceutical | Phibro Animal vs. ANI Pharmaceuticals |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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