Correlation Between Brooklyn Immunotherapeuti and Amicus Therapeutics

Can any of the company-specific risk be diversified away by investing in both Brooklyn Immunotherapeuti and Amicus Therapeutics 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 Brooklyn Immunotherapeuti and Amicus Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brooklyn Immunotherapeutics and Amicus Therapeutics, you can compare the effects of market volatilities on Brooklyn Immunotherapeuti and Amicus Therapeutics 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 Brooklyn Immunotherapeuti with a short position of Amicus Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brooklyn Immunotherapeuti and Amicus Therapeutics.

Diversification Opportunities for Brooklyn Immunotherapeuti and Amicus Therapeutics

0.0

Correlation Coefficient

Brooklyn Immunotherapeuti  Amicus Therapeutics

Pay attention - limited upside

The 3 months correlation between Brooklyn and Amicus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Brooklyn Immunotherapeutics and Amicus Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amicus Therapeutics and Brooklyn Immunotherapeuti 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 Brooklyn Immunotherapeutics are associated (or correlated) with Amicus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amicus Therapeutics has no effect on the direction of Brooklyn Immunotherapeuti i.e., Brooklyn Immunotherapeuti and Amicus Therapeutics go up and down completely randomly.

Pair Corralation between Brooklyn Immunotherapeuti and Amicus Therapeutics

Considering the 90-day investment horizon Brooklyn Immunotherapeutics is expected to under-perform the Amicus Therapeutics. In addition to that, Brooklyn Immunotherapeuti is 1.96 times more volatile than Amicus Therapeutics. It trades about -0.2 of its total potential returns per unit of risk. Amicus Therapeutics is currently generating about 0.05 per unit of volatility. If you would invest  662.00  in Amicus Therapeutics on January 25, 2024 and sell it today you would earn a total of  409.00  from holding Amicus Therapeutics or generate 61.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	23.03%
Values	Daily Returns

Brooklyn Immunotherapeutics  vs.  Amicus Therapeutics

Brooklyn Immunotherapeuti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brooklyn Immunotherapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Brooklyn Immunotherapeuti is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Amicus Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amicus Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in May 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Brooklyn Immunotherapeuti and Amicus Therapeutics

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

The idea behind Brooklyn Immunotherapeutics and Amicus Therapeutics 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.

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 Anywhere module to track or share privately all of your investments from the convenience of any device.