Correlation Between Assertio Therapeutics and Amphastar

Can any of the company-specific risk be diversified away by investing in both Assertio Therapeutics and Amphastar 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 Assertio Therapeutics and Amphastar into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Assertio Therapeutics and Amphastar P, you can compare the effects of market volatilities on Assertio Therapeutics and Amphastar 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 Assertio Therapeutics with a short position of Amphastar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assertio Therapeutics and Amphastar.

Diversification Opportunities for Assertio Therapeutics and Amphastar

0.21

Correlation Coefficient

Assertio Therapeutics  Amphastar

Modest diversification

The 3 months correlation between Assertio and Amphastar is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Assertio Therapeutics and Amphastar P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphastar P and Assertio Therapeutics 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 Assertio Therapeutics are associated (or correlated) with Amphastar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphastar P has no effect on the direction of Assertio Therapeutics i.e., Assertio Therapeutics and Amphastar go up and down completely randomly.

Pair Corralation between Assertio Therapeutics and Amphastar

Given the investment horizon of 90 days Assertio Therapeutics is expected to under-perform the Amphastar. In addition to that, Assertio Therapeutics is 1.72 times more volatile than Amphastar P. It trades about -0.04 of its total potential returns per unit of risk. Amphastar P is currently generating about 0.0 per unit of volatility. If you would invest  4,690  in Amphastar P on September 4, 2024 and sell it today you would lose (102.00) from holding Amphastar P or give up 2.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Assertio Therapeutics  vs.  Amphastar P

Assertio Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Assertio Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Amphastar P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amphastar P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Amphastar is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Assertio Therapeutics and Amphastar

The main advantage of trading using opposite Assertio Therapeutics and Amphastar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assertio Therapeutics position performs unexpectedly, Amphastar 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 Amphastar will offset losses from the drop in Amphastar's long position.

The idea behind Assertio Therapeutics and Amphastar P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.