Correlation Between Amicus Therapeutics and Brickell Biotech

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

Diversification Opportunities for Amicus Therapeutics and Brickell Biotech

-0.24
  Correlation Coefficient

Very good diversification

The 3 months correlation between Amicus and Brickell is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Amicus Therapeutics and Brickell Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brickell Biotech 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 Brickell Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brickell Biotech has no effect on the direction of Amicus Therapeutics i.e., Amicus Therapeutics and Brickell Biotech go up and down completely randomly.

Pair Corralation between Amicus Therapeutics and Brickell Biotech

Given the investment horizon of 90 days Amicus Therapeutics is expected to generate 0.34 times more return on investment than Brickell Biotech. However, Amicus Therapeutics is 2.98 times less risky than Brickell Biotech. It trades about 0.37 of its potential returns per unit of risk. Brickell Biotech is currently generating about -0.08 per unit of risk. If you would invest  777.00  in Amicus Therapeutics on April 3, 2022 and sell it today you would earn a total of  303.00  from holding Amicus Therapeutics or generate 39.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Amicus Therapeutics  vs.  Brickell Biotech

 Performance (%) 
      Timeline 
Amicus Therapeutics 
Amicus Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Amicus Therapeutics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sluggish essential indicators, Amicus Therapeutics exhibited solid returns over the last few months and may actually be approaching a breakup point.

Amicus Price Channel

Brickell Biotech 
Brickell Performance
0 of 100
Over the last 90 days Brickell Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's fundamental drivers remain nearly stable which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Structure and Payout Changes

Last Split Factor
1:7
Dividend Date
2019-09-03
Last Split Date
2019-09-03

Brickell Price Channel

Amicus Therapeutics and Brickell Biotech Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Amicus Therapeutics and Brickell Biotech

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

Amicus Therapeutics

Pair trading matchups for Amicus Therapeutics

The idea behind Amicus Therapeutics and Brickell Biotech 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go