Correlation Between Intra Cellular and Assertio Therapeutics

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

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

Diversification Opportunities for Intra Cellular and Assertio Therapeutics

0.51

Correlation Coefficient

Intra Cellular  Assertio Therapeutics

Very weak diversification

The 3 months correlation between Intra and Assertio is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Intra Cellular Therapies and Assertio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assertio Therapeutics and Intra Cellular 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 Intra Cellular Therapies 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 Intra Cellular i.e., Intra Cellular and Assertio Therapeutics go up and down completely randomly.

Pair Corralation between Intra Cellular and Assertio Therapeutics

If you would invest  61.00  in Assertio Therapeutics on May 4, 2025 and sell it today you would earn a total of  10.00  from holding Assertio Therapeutics or generate 16.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

Intra Cellular Therapies  vs.  Assertio Therapeutics

Intra Cellular Therapies

Risk-Adjusted Performance

Very Weak

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

Assertio Therapeutics

Risk-Adjusted Performance

OK

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.

Pair Trading with Intra Cellular and Assertio Therapeutics

The main advantage of trading using opposite Intra Cellular and Assertio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intra Cellular 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 Intra Cellular Therapies 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.

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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.