Correlation Between Amarin PLC and Sucampo Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Amarin PLC and Sucampo 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 Amarin PLC and Sucampo Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amarin PLC and Sucampo Pharmaceuticals, you can compare the effects of market volatilities on Amarin PLC and Sucampo 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 Amarin PLC with a short position of Sucampo Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amarin PLC and Sucampo Pharmaceuticals.
Diversification Opportunities for Amarin PLC and Sucampo Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amarin and Sucampo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amarin PLC and Sucampo Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sucampo Pharmaceuticals and Amarin 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 Amarin PLC are associated (or correlated) with Sucampo Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sucampo Pharmaceuticals has no effect on the direction of Amarin PLC i.e., Amarin PLC and Sucampo Pharmaceuticals go up and down completely randomly.
Pair Corralation between Amarin PLC and Sucampo Pharmaceuticals
If you would invest (100.00) in Sucampo Pharmaceuticals on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Sucampo Pharmaceuticals or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amarin PLC vs. Sucampo Pharmaceuticals
Performance |
| Timeline |
| Amarin PLC |
| Sucampo Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amarin PLC and Sucampo Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amarin PLC and Sucampo Pharmaceuticals
The main advantage of trading using opposite Amarin PLC and Sucampo Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amarin PLC position performs unexpectedly, Sucampo 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 Sucampo Pharmaceuticals will offset losses from the drop in Sucampo Pharmaceuticals' long position.| Amarin PLC vs. Scilex Holding | Amarin PLC vs. Biogen Inc | Amarin PLC vs. Gilead Sciences | Amarin PLC vs. AstraZeneca PLC ADR |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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