Correlation Between Lantheus Holdings and Phibro Animal
Can any of the company-specific risk be diversified away by investing in both Lantheus Holdings and Phibro Animal 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 Lantheus Holdings and Phibro Animal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lantheus Holdings and Phibro Animal Health, you can compare the effects of market volatilities on Lantheus Holdings and Phibro Animal 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 Lantheus Holdings with a short position of Phibro Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantheus Holdings and Phibro Animal.
Diversification Opportunities for Lantheus Holdings and Phibro Animal
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lantheus and Phibro is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Lantheus Holdings and Phibro Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phibro Animal Health and Lantheus Holdings 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 Lantheus Holdings are associated (or correlated) with Phibro Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phibro Animal Health has no effect on the direction of Lantheus Holdings i.e., Lantheus Holdings and Phibro Animal go up and down completely randomly.
Pair Corralation between Lantheus Holdings and Phibro Animal
Given the investment horizon of 90 days Lantheus Holdings is expected to under-perform the Phibro Animal. In addition to that, Lantheus Holdings is 1.76 times more volatile than Phibro Animal Health. It trades about -0.04 of its total potential returns per unit of risk. Phibro Animal Health is currently generating about 0.08 per unit of volatility. If you would invest 2,188 in Phibro Animal Health on September 13, 2024 and sell it today you would earn a total of 200.00 from holding Phibro Animal Health or generate 9.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lantheus Holdings vs. Phibro Animal Health
Performance |
Timeline |
Lantheus Holdings |
Phibro Animal Health |
Lantheus Holdings and Phibro Animal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lantheus Holdings and Phibro Animal
The main advantage of trading using opposite Lantheus Holdings and Phibro Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantheus Holdings position performs unexpectedly, Phibro Animal 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 Phibro Animal will offset losses from the drop in Phibro Animal's long position.Lantheus Holdings vs. Neurocrine Biosciences | Lantheus Holdings vs. Ironwood Pharmaceuticals | Lantheus Holdings vs. Alkermes Plc | Lantheus Holdings vs. Avadel Pharmaceuticals PLC |
Phibro Animal vs. Pacira BioSciences, | Phibro Animal vs. Dr Reddys Laboratories | Phibro Animal vs. Collegium Pharmaceutical | Phibro Animal vs. ANI Pharmaceuticals |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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