Correlation Between Assertio Therapeutics and Biotech Medics

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

By analyzing existing cross correlation between Assertio Therapeutics and Biotech Medics Ne, you can compare the effects of market volatilities on Assertio Therapeutics and Biotech Medics 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 Assertio Therapeutics with a short position of Biotech Medics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assertio Therapeutics and Biotech Medics.

Diversification Opportunities for Assertio Therapeutics and Biotech Medics

-0.12

Correlation Coefficient

Assertio Therapeutics  Biotech Medics

Good diversification

The 3 months correlation between Assertio and Biotech is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Assertio Therapeutics and Biotech Medics Ne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biotech Medics Ne and Assertio Therapeutics 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 Assertio Therapeutics are associated (or correlated) with Biotech Medics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biotech Medics Ne has no effect on the direction of Assertio Therapeutics i.e., Assertio Therapeutics and Biotech Medics go up and down completely randomly.

Pair Corralation between Assertio Therapeutics and Biotech Medics

Given the investment horizon of 90 days Assertio Therapeutics is expected to generate 11.41 times less return on investment than Biotech Medics. But when comparing it to its historical volatility, Assertio Therapeutics is 12.59 times less risky than Biotech Medics. It trades about 0.1 of its potential returns per unit of risk. Biotech Medics Ne is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1.40  in Biotech Medics Ne on May 10, 2025 and sell it today you would lose (0.32) from holding Biotech Medics Ne or give up 22.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Assertio Therapeutics  vs.  Biotech Medics Ne

Assertio Therapeutics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Assertio Therapeutics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Assertio Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Biotech Medics Ne

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Biotech Medics Ne are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting fundamental indicators, Biotech Medics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Assertio Therapeutics and Biotech Medics

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

The idea behind Assertio Therapeutics and Biotech Medics Ne 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 CEOs Directory module to screen CEOs from public companies around the world.