Correlation Between Teva Pharma and Antisense Therapeutics
Can any of the company-specific risk be diversified away by investing in both Teva Pharma and Antisense 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 Teva Pharma and Antisense Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teva Pharma Industries and Antisense Therapeutics Limited, you can compare the effects of market volatilities on Teva Pharma and Antisense 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 Teva Pharma with a short position of Antisense Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teva Pharma and Antisense Therapeutics.
Diversification Opportunities for Teva Pharma and Antisense Therapeutics
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teva and Antisense is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Teva Pharma Industries and Antisense Therapeutics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antisense Therapeutics and Teva Pharma 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 Teva Pharma Industries are associated (or correlated) with Antisense Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antisense Therapeutics has no effect on the direction of Teva Pharma i.e., Teva Pharma and Antisense Therapeutics go up and down completely randomly.
Pair Corralation between Teva Pharma and Antisense Therapeutics
Given the investment horizon of 90 days Teva Pharma is expected to generate 6.04 times less return on investment than Antisense Therapeutics. But when comparing it to its historical volatility, Teva Pharma Industries is 8.61 times less risky than Antisense Therapeutics. It trades about 0.07 of its potential returns per unit of risk. Antisense Therapeutics Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6.50 in Antisense Therapeutics Limited on August 29, 2024 and sell it today you would lose (2.30) from holding Antisense Therapeutics Limited or give up 35.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teva Pharma Industries vs. Antisense Therapeutics Limited
Performance |
| Timeline |
| Teva Pharma Industries |
| Antisense Therapeutics |
Teva Pharma and Antisense Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teva Pharma and Antisense Therapeutics
The main advantage of trading using opposite Teva Pharma and Antisense Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teva Pharma position performs unexpectedly, Antisense 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 Antisense Therapeutics will offset losses from the drop in Antisense Therapeutics' long position.| Teva Pharma vs. Haleon plc | Teva Pharma vs. Bausch Health Companies | Teva Pharma vs. Zoetis Inc | Teva Pharma vs. Takeda Pharmaceutical Co |
| Antisense Therapeutics vs. Amexdrug | Antisense Therapeutics vs. Aion Therapeutic | Antisense Therapeutics vs. Alterola Biotech | Antisense Therapeutics vs. The BC Bud |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |