Correlation Between 60 Degrees and Novo Nordisk

Can any of the company-specific risk be diversified away by investing in both 60 Degrees and Novo Nordisk 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 60 Degrees and Novo Nordisk into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 60 Degrees Pharmaceuticals, and Novo Nordisk AS, you can compare the effects of market volatilities on 60 Degrees and Novo Nordisk 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 60 Degrees with a short position of Novo Nordisk. Check out your portfolio center. Please also check ongoing floating volatility patterns of 60 Degrees and Novo Nordisk.

Diversification Opportunities for 60 Degrees and Novo Nordisk

-0.29

Correlation Coefficient

60 Degrees  Novo Nordisk

Very good diversification

The 3 months correlation between SXTPW and Novo is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding 60 Degrees Pharmaceuticals, and Novo Nordisk AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novo Nordisk AS and 60 Degrees 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 60 Degrees Pharmaceuticals, are associated (or correlated) with Novo Nordisk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novo Nordisk AS has no effect on the direction of 60 Degrees i.e., 60 Degrees and Novo Nordisk go up and down completely randomly.

Pair Corralation between 60 Degrees and Novo Nordisk

Assuming the 90 days horizon 60 Degrees Pharmaceuticals, is expected to generate 10.57 times more return on investment than Novo Nordisk. However, 60 Degrees is 10.57 times more volatile than Novo Nordisk AS. It trades about 0.17 of its potential returns per unit of risk. Novo Nordisk AS is currently generating about -0.06 per unit of risk. If you would invest  1.48  in 60 Degrees Pharmaceuticals, on November 28, 2024 and sell it today you would earn a total of  0.93  from holding 60 Degrees Pharmaceuticals, or generate 62.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	82.76%
Values	Daily Returns

60 Degrees Pharmaceuticals,  vs.  Novo Nordisk AS

60 Degrees Pharmaceu

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in 60 Degrees Pharmaceuticals, are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, 60 Degrees showed solid returns over the last few months and may actually be approaching a breakup point.

Novo Nordisk AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Novo Nordisk AS 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 very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with 60 Degrees and Novo Nordisk

The main advantage of trading using opposite 60 Degrees and Novo Nordisk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 60 Degrees position performs unexpectedly, Novo Nordisk 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 Novo Nordisk will offset losses from the drop in Novo Nordisk's long position.

The idea behind 60 Degrees Pharmaceuticals, and Novo Nordisk AS 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..