Correlation Between Amphastar and Intracellular

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

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

Diversification Opportunities for Amphastar and Intracellular

-0.79

Correlation Coefficient

Amphastar  Intracellular

Pay attention - limited upside

The 3 months correlation between Amphastar and Intracellular is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Amphastar P and Intracellular Th in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracellular Th and Amphastar 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 Amphastar P are associated (or correlated) with Intracellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intracellular Th has no effect on the direction of Amphastar i.e., Amphastar and Intracellular go up and down completely randomly.

Pair Corralation between Amphastar and Intracellular

Given the investment horizon of 90 days Amphastar P is expected to under-perform the Intracellular. In addition to that, Amphastar is 7.15 times more volatile than Intracellular Th. It trades about -0.26 of its total potential returns per unit of risk. Intracellular Th is currently generating about 0.2 per unit of volatility. If you would invest  12,735  in Intracellular Th on January 24, 2025 and sell it today you would earn a total of  452.00  from holding Intracellular Th or generate 3.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	77.42%
Values	Daily Returns

Amphastar P  vs.  Intracellular Th

Amphastar P

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amphastar P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Intracellular Th

Risk-Adjusted Performance

Good

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

Pair Trading with Amphastar and Intracellular

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

The idea behind Amphastar P and Intracellular Th 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.