Correlation Between China SXT and Acorda Therapeutics
Can any of the company-specific risk be diversified away by investing in both China SXT and Acorda Therapeutics 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 China SXT and Acorda Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China SXT Pharmaceuticals and Acorda Therapeutics, you can compare the effects of market volatilities on China SXT and Acorda Therapeutics 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 China SXT with a short position of Acorda Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of China SXT and Acorda Therapeutics.
Diversification Opportunities for China SXT and Acorda Therapeutics
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Acorda is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding China SXT Pharmaceuticals and Acorda Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acorda Therapeutics and China SXT 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 China SXT Pharmaceuticals are associated (or correlated) with Acorda Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acorda Therapeutics has no effect on the direction of China SXT i.e., China SXT and Acorda Therapeutics go up and down completely randomly.
Pair Corralation between China SXT and Acorda Therapeutics
Given the investment horizon of 90 days China SXT Pharmaceuticals is expected to under-perform the Acorda Therapeutics. In addition to that, China SXT is 1.04 times more volatile than Acorda Therapeutics. It trades about -0.05 of its total potential returns per unit of risk. Acorda Therapeutics is currently generating about 0.06 per unit of volatility. If you would invest 1,176 in Acorda Therapeutics on August 26, 2024 and sell it today you would earn a total of 444.00 from holding Acorda Therapeutics or generate 37.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.99% |
| Values | Daily Returns |
China SXT Pharmaceuticals vs. Acorda Therapeutics
Performance |
| Timeline |
| China SXT Pharmaceuticals |
| Acorda Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China SXT and Acorda Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China SXT and Acorda Therapeutics
The main advantage of trading using opposite China SXT and Acorda Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China SXT position performs unexpectedly, Acorda Therapeutics 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 Acorda Therapeutics will offset losses from the drop in Acorda Therapeutics' long position.| China SXT vs. Akanda Corp | China SXT vs. Petros Pharmaceuticals | China SXT vs. GelStat Corp | China SXT vs. Shuttle Pharmaceuticals |
| Acorda Therapeutics vs. Shionogi Co | Acorda Therapeutics vs. Pacira BioSciences, | Acorda Therapeutics vs. Sunshine Biopharma Warrant | Acorda Therapeutics vs. Biofrontera |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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