Correlation Between BioCryst Pharmaceuticals and Assertio Therapeutics

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

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

Diversification Opportunities for BioCryst Pharmaceuticals and Assertio Therapeutics

-0.47

Correlation Coefficient

BioCryst Pharmaceuticals  Assertio Therapeutics

Very good diversification

The 3 months correlation between BioCryst and Assertio is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding BioCryst Pharmaceuticals and Assertio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assertio Therapeutics and BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals are associated (or correlated) with Assertio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assertio Therapeutics has no effect on the direction of BioCryst Pharmaceuticals i.e., BioCryst Pharmaceuticals and Assertio Therapeutics go up and down completely randomly.

Pair Corralation between BioCryst Pharmaceuticals and Assertio Therapeutics

Given the investment horizon of 90 days BioCryst Pharmaceuticals is expected to under-perform the Assertio Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, BioCryst Pharmaceuticals is 1.69 times less risky than Assertio Therapeutics. The stock trades about -0.18 of its potential returns per unit of risk. The Assertio Therapeutics is currently generating about 0.13 of returns per unit of risk over similar time horizon. 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

BioCryst Pharmaceuticals  vs.  Assertio Therapeutics

BioCryst Pharmaceuticals

Risk-Adjusted Performance

Weakest

Over the last 90 days BioCryst Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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.

Pair Trading with BioCryst Pharmaceuticals and Assertio Therapeutics

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

The idea behind BioCryst Pharmaceuticals and Assertio Therapeutics 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.