Correlation Between Partners Group and Santhera Pharmaceuticals

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

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

Diversification Opportunities for Partners Group and Santhera Pharmaceuticals

-0.03

Correlation Coefficient

Partners Group  Santhera Pharmaceuticals

Good diversification

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

Pair Corralation between Partners Group and Santhera Pharmaceuticals

Assuming the 90 days trading horizon Partners Group Holding is expected to generate 0.49 times more return on investment than Santhera Pharmaceuticals. However, Partners Group Holding is 2.06 times less risky than Santhera Pharmaceuticals. It trades about 0.08 of its potential returns per unit of risk. Santhera Pharmaceuticals Holding is currently generating about 0.03 per unit of risk. If you would invest  119,200  in Partners Group Holding on September 14, 2024 and sell it today you would earn a total of  7,250  from holding Partners Group Holding or generate 6.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Partners Group Holding  vs.  Santhera Pharmaceuticals Holdi

Partners Group Holding

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Partners Group Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Partners Group is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Santhera Pharmaceuticals

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Santhera Pharmaceuticals Holding are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Santhera Pharmaceuticals is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Partners Group and Santhera Pharmaceuticals

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

The idea behind Partners Group Holding and Santhera Pharmaceuticals Holding 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 Commodity Directory module to find actively traded commodities issued by global exchanges.