Correlation Between Saputo and Acacia Pharma
Can any of the company-specific risk be diversified away by investing in both Saputo and Acacia Pharma 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 Saputo and Acacia Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saputo Inc and Acacia Pharma Group, you can compare the effects of market volatilities on Saputo and Acacia Pharma 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 Saputo with a short position of Acacia Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saputo and Acacia Pharma.
Diversification Opportunities for Saputo and Acacia Pharma
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Saputo and Acacia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Saputo Inc and Acacia Pharma Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acacia Pharma Group and Saputo 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 Saputo Inc are associated (or correlated) with Acacia Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acacia Pharma Group has no effect on the direction of Saputo i.e., Saputo and Acacia Pharma go up and down completely randomly.
Pair Corralation between Saputo and Acacia Pharma
If you would invest 1,912 in Saputo Inc on January 26, 2024 and sell it today you would earn a total of 58.00 from holding Saputo Inc or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Saputo Inc vs. Acacia Pharma Group
Performance |
| Timeline |
| Saputo Inc |
| Acacia Pharma Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Saputo and Acacia Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saputo and Acacia Pharma
The main advantage of trading using opposite Saputo and Acacia Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saputo position performs unexpectedly, Acacia Pharma 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 Acacia Pharma will offset losses from the drop in Acacia Pharma's long position.| Saputo vs. Post Holdings | Saputo vs. J J Snack | Saputo vs. The Hain Celestial | Saputo vs. Bellring Brands LLC |
| Acacia Pharma vs. Playtika Holding Corp | Acacia Pharma vs. Zhihu Inc ADR | Acacia Pharma vs. Reservoir Media | Acacia Pharma vs. National CineMedia |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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