Correlation Between Amicus Therapeutics and Viking Therapeutics

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

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

Diversification Opportunities for Amicus Therapeutics and Viking Therapeutics

0.2

Correlation Coefficient

Amicus Therapeutics  Viking Therapeutics

Modest diversification

The 3 months correlation between Amicus and Viking is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Amicus Therapeutics and Viking Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Therapeutics and Amicus 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 Amicus Therapeutics are associated (or correlated) with Viking Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Therapeutics has no effect on the direction of Amicus Therapeutics i.e., Amicus Therapeutics and Viking Therapeutics go up and down completely randomly.

Pair Corralation between Amicus Therapeutics and Viking Therapeutics

Given the investment horizon of 90 days Amicus Therapeutics is expected to generate 2.15 times less return on investment than Viking Therapeutics. But when comparing it to its historical volatility, Amicus Therapeutics is 1.17 times less risky than Viking Therapeutics. It trades about 0.07 of its potential returns per unit of risk. Viking Therapeutics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2,701  in Viking Therapeutics on May 6, 2025 and sell it today you would earn a total of  697.00  from holding Viking Therapeutics or generate 25.81% return on investment over 90 days.

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

Amicus Therapeutics  vs.  Viking Therapeutics

Amicus Therapeutics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amicus Therapeutics are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating essential indicators, Amicus Therapeutics may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Viking Therapeutics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Viking Therapeutics are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Viking Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amicus Therapeutics and Viking Therapeutics

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

The idea behind Amicus Therapeutics and Viking 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.

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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 Global Correlations module to find global opportunities by holding instruments from different markets.