Correlation Between Sanofi ADR and Mayne Pharma
Can any of the company-specific risk be diversified away by investing in both Sanofi ADR and Mayne Pharma 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 Sanofi ADR and Mayne Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanofi ADR and Mayne Pharma Group, you can compare the effects of market volatilities on Sanofi ADR and Mayne Pharma 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 Sanofi ADR with a short position of Mayne Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanofi ADR and Mayne Pharma.
Diversification Opportunities for Sanofi ADR and Mayne Pharma
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sanofi and Mayne is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sanofi ADR and Mayne Pharma Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayne Pharma Group and Sanofi ADR 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 Sanofi ADR are associated (or correlated) with Mayne Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayne Pharma Group has no effect on the direction of Sanofi ADR i.e., Sanofi ADR and Mayne Pharma go up and down completely randomly.
Pair Corralation between Sanofi ADR and Mayne Pharma
If you would invest 13.00 in Mayne Pharma Group on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Mayne Pharma Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Sanofi ADR vs. Mayne Pharma Group
Performance |
| Timeline |
| Sanofi ADR |
| Mayne Pharma Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sanofi ADR and Mayne Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanofi ADR and Mayne Pharma
The main advantage of trading using opposite Sanofi ADR and Mayne Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanofi ADR position performs unexpectedly, Mayne Pharma 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 Mayne Pharma will offset losses from the drop in Mayne Pharma's long position.| Sanofi ADR vs. Alkermes Plc | Sanofi ADR vs. Ironwood Pharmaceuticals | Sanofi ADR vs. Deciphera Pharmaceuticals LLC | Sanofi ADR vs. Eagle Pharmaceuticals |
| Mayne Pharma vs. Bristol Myers Squibb | Mayne Pharma vs. AbbVie Inc | Mayne Pharma vs. Merck Company | Mayne Pharma vs. Gilead Sciences |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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