Correlation Between Santhera Pharmaceuticals and Newron Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both Santhera Pharmaceuticals and Newron 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 Santhera Pharmaceuticals and Newron Pharmaceuticals 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 Newron Pharmaceuticals SpA, you can compare the effects of market volatilities on Santhera Pharmaceuticals and Newron 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 Santhera Pharmaceuticals with a short position of Newron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santhera Pharmaceuticals and Newron Pharmaceuticals.

Diversification Opportunities for Santhera Pharmaceuticals and Newron Pharmaceuticals

0.0

Correlation Coefficient

Santhera Pharmaceuticals  Newron Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between Santhera and Newron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Santhera Pharmaceuticals Holdi and Newron Pharmaceuticals SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newron Pharmaceuticals 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 Newron Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newron Pharmaceuticals has no effect on the direction of Santhera Pharmaceuticals i.e., Santhera Pharmaceuticals and Newron Pharmaceuticals go up and down completely randomly.

Pair Corralation between Santhera Pharmaceuticals and Newron Pharmaceuticals

If you would invest  1,402  in Santhera Pharmaceuticals Holding on April 22, 2025 and sell it today you would lose (2.00) from holding Santhera Pharmaceuticals Holding or give up 0.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Santhera Pharmaceuticals Holdi  vs.  Newron Pharmaceuticals SpA

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.

Newron Pharmaceuticals

Risk-Adjusted Performance

Weak

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

Pair Trading with Santhera Pharmaceuticals and Newron Pharmaceuticals

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

The idea behind Santhera Pharmaceuticals Holding and Newron Pharmaceuticals SpA 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.