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Correlation Between Galapagos and Auris Medical

Analyzing existing cross correlation between Galapagos NV and Auris Medical Holding Ltd. You can compare the effects of market volatilities on Galapagos and Auris Medical 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 Galapagos with a short position of Auris Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galapagos and Auris Medical.

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Diversification Opportunities for Galapagos and Auris Medical

Galapagos NV diversification synergy
0.07
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Significant diversification

The 3 months correlation between Galapagos and Auris is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Galapagos NV and Auris Medical Holding Ltd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Auris Medical Holding and Galapagos 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 Galapagos NV are associated (or correlated) with Auris Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auris Medical Holding has no effect on the direction of Galapagos i.e. Galapagos and Auris Medical go up and down completely randomly.

Pair Corralation between Galapagos and Auris Medical

Given the investment horizon of 30 days, Galapagos NV is expected to generate 0.68 times more return on investment than Auris Medical. However, Galapagos NV is 1.48 times less risky than Auris Medical. It trades about 0.12 of its potential returns per unit of risk. Auris Medical Holding Ltd is currently generating about -0.06 per unit of risk. If you would invest  19,581  in Galapagos NV on January 27, 2020 and sell it today you would earn a total of  3,810  from holding Galapagos NV or generate 19.46% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy96.77%
ValuesDaily Returns

Galapagos NV  vs.  Auris Medical Holding Ltd

 Performance (%) 
    
  Timeline 
Galapagos NV 
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Galapagos NV are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. In spite of rather fragile fundamental drivers, Galapagos exhibited solid returns over the last few months and may actually be approaching a breakup point.
Auris Medical Holding 
00

Risk-Adjusted Performance

Over the last 30 days Auris Medical Holding Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of fragile performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in March 2020. The latest agitation may also be a sign of long running up-swing for the enterprise management.

Galapagos and Auris Medical Volatility Contrast

 Predicted Return Density 
    
  Returns 
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