Correlation Between Valeant Pharmaceuticals and Ipsen SA
Can any of the company-specific risk be diversified away by investing in both Valeant Pharmaceuticals and Ipsen 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 Valeant Pharmaceuticals and Ipsen SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valeant Pharmaceuticals International and Ipsen SA, you can compare the effects of market volatilities on Valeant Pharmaceuticals and Ipsen 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 Valeant Pharmaceuticals with a short position of Ipsen SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valeant Pharmaceuticals and Ipsen SA.
Diversification Opportunities for Valeant Pharmaceuticals and Ipsen SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valeant and Ipsen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Valeant Pharmaceuticals Intern and Ipsen SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ipsen SA and Valeant Pharmaceuticals 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 Valeant Pharmaceuticals International are associated (or correlated) with Ipsen SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ipsen SA has no effect on the direction of Valeant Pharmaceuticals i.e., Valeant Pharmaceuticals and Ipsen SA go up and down completely randomly.
Pair Corralation between Valeant Pharmaceuticals and Ipsen SA
If you would invest 11,725 in Ipsen SA on January 26, 2024 and sell it today you would earn a total of 35.00 from holding Ipsen SA or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Valeant Pharmaceuticals Intern vs. Ipsen SA
Performance |
| Timeline |
| Valeant Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ipsen SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Valeant Pharmaceuticals and Ipsen SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valeant Pharmaceuticals and Ipsen SA
The main advantage of trading using opposite Valeant Pharmaceuticals and Ipsen SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valeant Pharmaceuticals position performs unexpectedly, Ipsen 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 Ipsen SA will offset losses from the drop in Ipsen SA's long position.| Valeant Pharmaceuticals vs. Eldorado Gold Corp | Valeant Pharmaceuticals vs. Enersys | Valeant Pharmaceuticals vs. Where Food Comes | Valeant Pharmaceuticals vs. Jacobs Solutions |
| Ipsen SA vs. Taro Pharmaceutical Industries | Ipsen SA vs. Esperion Therapeutics | Ipsen SA vs. Durect | Ipsen SA vs. Lucy Scientific Discovery |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |