Correlation Between Haleon Plc and Context Therapeutics

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Haleon Plc and Context 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 Haleon Plc and Context Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haleon plc and Context Therapeutics, you can compare the effects of market volatilities on Haleon Plc and Context 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 Haleon Plc with a short position of Context Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haleon Plc and Context Therapeutics.

Diversification Opportunities for Haleon Plc and Context Therapeutics

-0.62
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Haleon and Context is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Haleon plc and Context Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Context Therapeutics and Haleon Plc 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 Haleon plc are associated (or correlated) with Context Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Context Therapeutics has no effect on the direction of Haleon Plc i.e., Haleon Plc and Context Therapeutics go up and down completely randomly.

Pair Corralation between Haleon Plc and Context Therapeutics

Considering the 90-day investment horizon Haleon plc is expected to generate 0.23 times more return on investment than Context Therapeutics. However, Haleon plc is 4.38 times less risky than Context Therapeutics. It trades about 0.06 of its potential returns per unit of risk. Context Therapeutics is currently generating about -0.06 per unit of risk. If you would invest  964.00  in Haleon plc on December 27, 2024 and sell it today you would earn a total of  41.00  from holding Haleon plc or generate 4.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Haleon plc  vs.  Context Therapeutics

 Performance 
       Timeline  
Haleon plc 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Haleon plc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy essential indicators, Haleon Plc is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
Context Therapeutics 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Context Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Haleon Plc and Context Therapeutics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Haleon Plc and Context Therapeutics

The main advantage of trading using opposite Haleon Plc and Context Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haleon Plc position performs unexpectedly, Context 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 Context Therapeutics will offset losses from the drop in Context Therapeutics' long position.
The idea behind Haleon plc and Context Therapeutics 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Other Complementary Tools

Fundamental Analysis
View fundamental data based on most recent published financial statements
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Transaction History
View history of all your transactions and understand their impact on performance
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals