Correlation Between Santhera Pharmaceuticals and Aluflexpack

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

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

Diversification Opportunities for Santhera Pharmaceuticals and Aluflexpack

-0.41

Correlation Coefficient

Santhera Pharmaceuticals  Aluflexpack

Very good diversification

The 3 months correlation between Santhera and Aluflexpack is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Santhera Pharmaceuticals Holdi and Aluflexpack AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluflexpack AG and Santhera 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 Santhera Pharmaceuticals Holding are associated (or correlated) with Aluflexpack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluflexpack AG has no effect on the direction of Santhera Pharmaceuticals i.e., Santhera Pharmaceuticals and Aluflexpack go up and down completely randomly.

Pair Corralation between Santhera Pharmaceuticals and Aluflexpack

Assuming the 90 days trading horizon Santhera Pharmaceuticals is expected to generate 1.56 times less return on investment than Aluflexpack. In addition to that, Santhera Pharmaceuticals is 8.18 times more volatile than Aluflexpack AG. It trades about 0.01 of its total potential returns per unit of risk. Aluflexpack AG is currently generating about 0.14 per unit of volatility. If you would invest  1,560  in Aluflexpack AG on April 22, 2025 and sell it today you would earn a total of  40.00  from holding Aluflexpack AG or generate 2.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Santhera Pharmaceuticals Holdi  vs.  Aluflexpack AG

Santhera Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Santhera Pharmaceuticals Holding has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Aluflexpack AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aluflexpack AG are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Aluflexpack 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 Santhera Pharmaceuticals and Aluflexpack

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

The idea behind Santhera Pharmaceuticals Holding and Aluflexpack AG 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.