Correlation Between Satsuma Pharmaceuticals and Balancer

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Satsuma Pharmaceuticals and Balancer 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 Satsuma Pharmaceuticals and Balancer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Satsuma Pharmaceuticals and Balancer, you can compare the effects of market volatilities on Satsuma Pharmaceuticals and Balancer 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 Satsuma Pharmaceuticals with a short position of Balancer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satsuma Pharmaceuticals and Balancer.

Diversification Opportunities for Satsuma Pharmaceuticals and Balancer

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Satsuma and Balancer is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Satsuma Pharmaceuticals and Balancer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balancer and Satsuma 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 Satsuma Pharmaceuticals are associated (or correlated) with Balancer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balancer has no effect on the direction of Satsuma Pharmaceuticals i.e., Satsuma Pharmaceuticals and Balancer go up and down completely randomly.

Pair Corralation between Satsuma Pharmaceuticals and Balancer

Given the investment horizon of 90 days Satsuma Pharmaceuticals is expected to generate 0.88 times more return on investment than Balancer. However, Satsuma Pharmaceuticals is 1.13 times less risky than Balancer. It trades about -0.01 of its potential returns per unit of risk. Balancer is currently generating about -0.03 per unit of risk. If you would invest  482.00  in Satsuma Pharmaceuticals on August 29, 2022 and sell it today you would lose (405.00)  from holding Satsuma Pharmaceuticals or give up 84.02% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy57.92%
ValuesDaily Returns

Satsuma Pharmaceuticals  vs.  Balancer

 Performance (%) 
       Timeline  
Satsuma Pharmaceuticals 
Satsuma Performance
0 of 100
Over the last 90 days Satsuma Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Satsuma Price Channel

Balancer 
Balancer Performance
0 of 100
Over the last 90 days Balancer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Balancer is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Balancer Price Channel

Satsuma Pharmaceuticals and Balancer Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Satsuma Pharmaceuticals and Balancer

The main advantage of trading using opposite Satsuma Pharmaceuticals and Balancer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satsuma Pharmaceuticals position performs unexpectedly, Balancer 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 Balancer will offset losses from the drop in Balancer's long position.
Satsuma Pharmaceuticals vs. Regeneron Pharmaceuticals
Satsuma Pharmaceuticals vs. Vertex Pharmaceutic
The idea behind Satsuma Pharmaceuticals and Balancer 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.
Balancer vs. XRP
Balancer vs. Solana
Balancer vs. Polygon
Balancer vs. Chainlink
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

Other Complementary Tools

Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go