Correlation Between Supernus Pharmaceuticals and Creative Edge
Can any of the company-specific risk be diversified away by investing in both Supernus Pharmaceuticals and Creative Edge 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 Supernus Pharmaceuticals and Creative Edge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supernus Pharmaceuticals and Creative Edge Nutrit, you can compare the effects of market volatilities on Supernus Pharmaceuticals and Creative Edge 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 Supernus Pharmaceuticals with a short position of Creative Edge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supernus Pharmaceuticals and Creative Edge.
Diversification Opportunities for Supernus Pharmaceuticals and Creative Edge
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Supernus and Creative is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Supernus Pharmaceuticals and Creative Edge Nutrit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Edge Nutrit and Supernus 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 Supernus Pharmaceuticals are associated (or correlated) with Creative Edge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Edge Nutrit has no effect on the direction of Supernus Pharmaceuticals i.e., Supernus Pharmaceuticals and Creative Edge go up and down completely randomly.
Pair Corralation between Supernus Pharmaceuticals and Creative Edge
Given the investment horizon of 90 days Supernus Pharmaceuticals is expected to generate 0.49 times more return on investment than Creative Edge. However, Supernus Pharmaceuticals is 2.04 times less risky than Creative Edge. It trades about 0.02 of its potential returns per unit of risk. Creative Edge Nutrit is currently generating about -0.04 per unit of risk. If you would invest 3,523 in Supernus Pharmaceuticals on August 30, 2024 and sell it today you would earn a total of 176.00 from holding Supernus Pharmaceuticals or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supernus Pharmaceuticals vs. Creative Edge Nutrit
Performance |
| Timeline |
| Supernus Pharmaceuticals |
| Creative Edge Nutrit |
Supernus Pharmaceuticals and Creative Edge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supernus Pharmaceuticals and Creative Edge
The main advantage of trading using opposite Supernus Pharmaceuticals and Creative Edge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supernus Pharmaceuticals position performs unexpectedly, Creative Edge 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 Creative Edge will offset losses from the drop in Creative Edge's long position.| Supernus Pharmaceuticals vs. Prestige Brand Holdings | Supernus Pharmaceuticals vs. Evotec SE ADR | Supernus Pharmaceuticals vs. Collegium Pharmaceutical | Supernus Pharmaceuticals vs. ANI Pharmaceuticals |
| Creative Edge vs. Benchmark Botanics | Creative Edge vs. Speakeasy Cannabis Club | Creative Edge vs. City View Green | Creative Edge vs. BC Craft Supply |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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