Correlation Between CuraScientific and Eisai

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

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

Diversification Opportunities for CuraScientific and Eisai

0.26

Correlation Coefficient

CuraScientific  Eisai

Modest diversification

The 3 months correlation between CuraScientific and Eisai is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding CuraScientific and Eisai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eisai and CuraScientific 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 CuraScientific are associated (or correlated) with Eisai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eisai has no effect on the direction of CuraScientific i.e., CuraScientific and Eisai go up and down completely randomly.

Pair Corralation between CuraScientific and Eisai

If you would invest  1.19  in CuraScientific on September 12, 2024 and sell it today you would earn a total of  0.00  from holding CuraScientific or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

CuraScientific  vs.  Eisai Co

CuraScientific

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CuraScientific has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CuraScientific is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Eisai

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eisai Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CuraScientific and Eisai

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

The idea behind CuraScientific and Eisai Co 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.