Correlation Between Creative Edge and Supernus Pharmaceuticals

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

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

Diversification Opportunities for Creative Edge and Supernus Pharmaceuticals

0.0

Correlation Coefficient

Creative Edge  Supernus Pharmaceuticals

Pay attention - limited upside

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

Pair Corralation between Creative Edge and Supernus Pharmaceuticals

If you would invest  3,148  in Supernus Pharmaceuticals on September 15, 2024 and sell it today you would earn a total of  469.00  from holding Supernus Pharmaceuticals or generate 14.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Creative Edge Nutrit  vs.  Supernus Pharmaceuticals

Creative Edge Nutrit

Risk-Adjusted Performance

0 of 100

OK

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

Supernus Pharmaceuticals

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Supernus Pharmaceuticals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Supernus Pharmaceuticals displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Creative Edge and Supernus Pharmaceuticals

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

The idea behind Creative Edge Nutrit and Supernus Pharmaceuticals 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.