Correlation Between Eagle Pharmaceuticals and Dynavax Technologies

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

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

Diversification Opportunities for Eagle Pharmaceuticals and Dynavax Technologies

0.0

Correlation Coefficient

Eagle Pharmaceuticals  Dynavax Technologies

Pay attention - limited upside

The 3 months correlation between Eagle and Dynavax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Pharmaceuticals and Dynavax Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynavax Technologies and Eagle 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 Eagle Pharmaceuticals are associated (or correlated) with Dynavax Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynavax Technologies has no effect on the direction of Eagle Pharmaceuticals i.e., Eagle Pharmaceuticals and Dynavax Technologies go up and down completely randomly.

Pair Corralation between Eagle Pharmaceuticals and Dynavax Technologies

If you would invest  1,283  in Dynavax Technologies on December 29, 2024 and sell it today you would earn a total of  85.00  from holding Dynavax Technologies or generate 6.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Eagle Pharmaceuticals  vs.  Dynavax Technologies

Eagle Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eagle Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Eagle Pharmaceuticals is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Dynavax Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dynavax Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Dynavax Technologies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Eagle Pharmaceuticals and Dynavax Technologies

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

The idea behind Eagle Pharmaceuticals and Dynavax Technologies 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..