Correlation Between Assertio Therapeutics and Intracellular

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

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

Diversification Opportunities for Assertio Therapeutics and Intracellular

-0.75

Correlation Coefficient

Assertio Therapeutics  Intracellular

Pay attention - limited upside

The 3 months correlation between Assertio and Intracellular is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Assertio Therapeutics and Intracellular Th in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracellular Th 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 Intracellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intracellular Th has no effect on the direction of Assertio Therapeutics i.e., Assertio Therapeutics and Intracellular go up and down completely randomly.

Pair Corralation between Assertio Therapeutics and Intracellular

Given the investment horizon of 90 days Assertio Therapeutics is expected to under-perform the Intracellular. In addition to that, Assertio Therapeutics is 2.01 times more volatile than Intracellular Th. It trades about -0.03 of its total potential returns per unit of risk. Intracellular Th is currently generating about 0.17 per unit of volatility. If you would invest  7,289  in Intracellular Th on September 4, 2024 and sell it today you would earn a total of  1,314  from holding Intracellular Th or generate 18.03% return on investment over 90 days.

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

Assertio Therapeutics  vs.  Intracellular Th

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.

Intracellular Th

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intracellular Th are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain fundamental indicators, Intracellular demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Assertio Therapeutics and Intracellular

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

The idea behind Assertio Therapeutics and Intracellular Th 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.