Correlation Between Molecular Partners and Santhera Pharmaceuticals

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

By analyzing existing cross correlation between Molecular Partners AG and Santhera Pharmaceuticals Holding, you can compare the effects of market volatilities on Molecular Partners and Santhera Pharmaceuticals 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 Molecular Partners with a short position of Santhera Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molecular Partners and Santhera Pharmaceuticals.

Diversification Opportunities for Molecular Partners and Santhera Pharmaceuticals

0.59

Correlation Coefficient

Molecular Partners  Santhera Pharmaceuticals

Very weak diversification

The 3 months correlation between Molecular and Santhera is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Molecular Partners AG and Santhera Pharmaceuticals Holdi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santhera Pharmaceuticals and Molecular Partners 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 Molecular Partners AG are associated (or correlated) with Santhera Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santhera Pharmaceuticals has no effect on the direction of Molecular Partners i.e., Molecular Partners and Santhera Pharmaceuticals go up and down completely randomly.

Pair Corralation between Molecular Partners and Santhera Pharmaceuticals

Assuming the 90 days trading horizon Molecular Partners AG is expected to under-perform the Santhera Pharmaceuticals. In addition to that, Molecular Partners is 1.24 times more volatile than Santhera Pharmaceuticals Holding. It trades about -0.01 of its total potential returns per unit of risk. Santhera Pharmaceuticals Holding is currently generating about 0.03 per unit of volatility. If you would invest  1,402  in Santhera Pharmaceuticals Holding on April 22, 2025 and sell it today you would earn a total of  44.00  from holding Santhera Pharmaceuticals Holding or generate 3.14% return on investment over 90 days.

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

Molecular Partners AG  vs.  Santhera Pharmaceuticals Holdi

Molecular Partners

Risk-Adjusted Performance

Very Weak

Over the last 90 days Molecular Partners AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Molecular Partners is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Santhera Pharmaceuticals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Santhera Pharmaceuticals Holding are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Santhera Pharmaceuticals is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Molecular Partners and Santhera Pharmaceuticals

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

The idea behind Molecular Partners AG and Santhera Pharmaceuticals Holding 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.