Correlation Between Santen Pharmaceutical and AstraZeneca PLC
Can any of the company-specific risk be diversified away by investing in both Santen Pharmaceutical and AstraZeneca PLC 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 Santen Pharmaceutical and AstraZeneca PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santen Pharmaceutical Co and AstraZeneca PLC, you can compare the effects of market volatilities on Santen Pharmaceutical and AstraZeneca PLC 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 Santen Pharmaceutical with a short position of AstraZeneca PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santen Pharmaceutical and AstraZeneca PLC.
Diversification Opportunities for Santen Pharmaceutical and AstraZeneca PLC
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Santen and AstraZeneca is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Santen Pharmaceutical Co and AstraZeneca PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstraZeneca PLC and Santen Pharmaceutical 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 Santen Pharmaceutical Co are associated (or correlated) with AstraZeneca PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AstraZeneca PLC has no effect on the direction of Santen Pharmaceutical i.e., Santen Pharmaceutical and AstraZeneca PLC go up and down completely randomly.
Pair Corralation between Santen Pharmaceutical and AstraZeneca PLC
Assuming the 90 days horizon Santen Pharmaceutical is expected to generate 1.24 times less return on investment than AstraZeneca PLC. But when comparing it to its historical volatility, Santen Pharmaceutical Co is 1.0 times less risky than AstraZeneca PLC. It trades about 0.03 of its potential returns per unit of risk. AstraZeneca PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 11,637 in AstraZeneca PLC on January 27, 2024 and sell it today you would earn a total of 2,968 from holding AstraZeneca PLC or generate 25.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Santen Pharmaceutical Co vs. AstraZeneca PLC
Performance |
| Timeline |
| Santen Pharmaceutical |
| AstraZeneca PLC |
Santen Pharmaceutical and AstraZeneca PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santen Pharmaceutical and AstraZeneca PLC
The main advantage of trading using opposite Santen Pharmaceutical and AstraZeneca PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santen Pharmaceutical position performs unexpectedly, AstraZeneca PLC 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 AstraZeneca PLC will offset losses from the drop in AstraZeneca PLC's long position.| Santen Pharmaceutical vs. Grifols SA ADR | Santen Pharmaceutical vs. Pfizer Inc | Santen Pharmaceutical vs. Sanofi ADR | Santen Pharmaceutical vs. Organon Co |
| AstraZeneca PLC vs. Grifols SA ADR | AstraZeneca PLC vs. Pfizer Inc | AstraZeneca PLC vs. Sanofi ADR | AstraZeneca PLC vs. Organon Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |