Correlation Between Assertio Therapeutics and Citius Pharmaceuticals

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

By analyzing existing cross correlation between Assertio Therapeutics and Citius Pharmaceuticals, you can compare the effects of market volatilities on Assertio Therapeutics and Citius Pharmaceuticals 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 Citius Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assertio Therapeutics and Citius Pharmaceuticals.

Diversification Opportunities for Assertio Therapeutics and Citius Pharmaceuticals

-0.65

Correlation Coefficient

Assertio Therapeutics  Citius Pharmaceuticals

Excellent diversification

The 3 months correlation between Assertio and Citius is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Assertio Therapeutics and Citius Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citius Pharmaceuticals 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 Citius Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citius Pharmaceuticals has no effect on the direction of Assertio Therapeutics i.e., Assertio Therapeutics and Citius Pharmaceuticals go up and down completely randomly.

Pair Corralation between Assertio Therapeutics and Citius Pharmaceuticals

Given the investment horizon of 90 days Assertio Therapeutics is expected to generate 0.73 times more return on investment than Citius Pharmaceuticals. However, Assertio Therapeutics is 1.38 times less risky than Citius Pharmaceuticals. It trades about 0.13 of its potential returns per unit of risk. Citius Pharmaceuticals is currently generating about -0.07 per unit of risk. If you would invest  69.00  in Assertio Therapeutics on July 9, 2025 and sell it today you would earn a total of  20.00  from holding Assertio Therapeutics or generate 28.99% return on investment over 90 days.

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

Assertio Therapeutics  vs.  Citius Pharmaceuticals

Assertio Therapeutics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Assertio Therapeutics are ranked lower than 10 (%) 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.

Citius Pharmaceuticals

Risk-Adjusted Performance

Weakest

Over the last 90 days Citius Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in November 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Assertio Therapeutics and Citius Pharmaceuticals

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

The idea behind Assertio Therapeutics and Citius Pharmaceuticals 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.