Correlation Between Lucy Scientific and Pacira BioSciences,

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

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

Diversification Opportunities for Lucy Scientific and Pacira BioSciences,

-0.78

Correlation Coefficient

Lucy Scientific  Pacira BioSciences,

Pay attention - limited upside

The 3 months correlation between Lucy and Pacira is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Lucy Scientific Discovery and Pacira BioSciences, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacira BioSciences, and Lucy Scientific 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 Lucy Scientific Discovery are associated (or correlated) with Pacira BioSciences,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacira BioSciences, has no effect on the direction of Lucy Scientific i.e., Lucy Scientific and Pacira BioSciences, go up and down completely randomly.

Pair Corralation between Lucy Scientific and Pacira BioSciences,

If you would invest  1,465  in Pacira BioSciences, on September 18, 2024 and sell it today you would earn a total of  522.00  from holding Pacira BioSciences, or generate 35.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

Lucy Scientific Discovery  vs.  Pacira BioSciences,

Lucy Scientific Discovery

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lucy Scientific Discovery has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Lucy Scientific is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pacira BioSciences,

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pacira BioSciences, are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Pacira BioSciences, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lucy Scientific and Pacira BioSciences,

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

The idea behind Lucy Scientific Discovery and Pacira BioSciences, 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.