Correlation Between Pacira BioSciences, and Oasmia Pharmaceutical

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

By analyzing existing cross correlation between Pacira BioSciences, and Oasmia Pharmaceutical AB, you can compare the effects of market volatilities on Pacira BioSciences, and Oasmia Pharmaceutical 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 Pacira BioSciences, with a short position of Oasmia Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacira BioSciences, and Oasmia Pharmaceutical.

Diversification Opportunities for Pacira BioSciences, and Oasmia Pharmaceutical

0.03

Correlation Coefficient

Pacira BioSciences,  Oasmia Pharmaceutical

Significant diversification

The 3 months correlation between Pacira and Oasmia is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Pacira BioSciences, and Oasmia Pharmaceutical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasmia Pharmaceutical and Pacira BioSciences, 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 Pacira BioSciences, are associated (or correlated) with Oasmia Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasmia Pharmaceutical has no effect on the direction of Pacira BioSciences, i.e., Pacira BioSciences, and Oasmia Pharmaceutical go up and down completely randomly.

Pair Corralation between Pacira BioSciences, and Oasmia Pharmaceutical

If you would invest  1,349  in Pacira BioSciences, on September 15, 2024 and sell it today you would earn a total of  637.00  from holding Pacira BioSciences, or generate 47.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Pacira BioSciences,  vs.  Oasmia Pharmaceutical AB

Pacira BioSciences,

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pacira BioSciences, are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Pacira BioSciences, showed solid returns over the last few months and may actually be approaching a breakup point.

Oasmia Pharmaceutical

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Pacira BioSciences, and Oasmia Pharmaceutical

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

The idea behind Pacira BioSciences, and Oasmia Pharmaceutical AB 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.