Correlation Between SIGA Technologies and Hypera SA

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

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

Diversification Opportunities for SIGA Technologies and Hypera SA

0.19

Correlation Coefficient

SIGA Technologies  Hypera SA

Average diversification

The 3 months correlation between SIGA and Hypera is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SIGA Technologies and Hypera SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hypera SA and SIGA Technologies 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 SIGA Technologies are associated (or correlated) with Hypera SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hypera SA has no effect on the direction of SIGA Technologies i.e., SIGA Technologies and Hypera SA go up and down completely randomly.

Pair Corralation between SIGA Technologies and Hypera SA

Given the investment horizon of 90 days SIGA Technologies is expected to under-perform the Hypera SA. In addition to that, SIGA Technologies is 1.16 times more volatile than Hypera SA. It trades about -0.17 of its total potential returns per unit of risk. Hypera SA is currently generating about 0.01 per unit of volatility. If you would invest  325.00  in Hypera SA on December 1, 2024 and sell it today you would lose (2.00) from holding Hypera SA or give up 0.62% of portfolio value over 90 days.

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

SIGA Technologies  vs.  Hypera SA

SIGA Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days SIGA Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain somewhat 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.

Hypera SA

Risk-Adjusted Performance

Very Weak

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

Pair Trading with SIGA Technologies and Hypera SA

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

The idea behind SIGA Technologies and Hypera SA 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.