Correlation Between Amphastar and Biomarin Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Amphastar and Biomarin Pharmaceutical 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 Amphastar and Biomarin Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphastar P and Biomarin Pharmaceutical, you can compare the effects of market volatilities on Amphastar and Biomarin Pharmaceutical 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 Amphastar with a short position of Biomarin Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphastar and Biomarin Pharmaceutical.
Diversification Opportunities for Amphastar and Biomarin Pharmaceutical
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amphastar and Biomarin is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Amphastar P and Biomarin Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biomarin Pharmaceutical and Amphastar 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 Amphastar P are associated (or correlated) with Biomarin Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biomarin Pharmaceutical has no effect on the direction of Amphastar i.e., Amphastar and Biomarin Pharmaceutical go up and down completely randomly.
Pair Corralation between Amphastar and Biomarin Pharmaceutical
Given the investment horizon of 90 days Amphastar P is expected to generate 1.96 times more return on investment than Biomarin Pharmaceutical. However, Amphastar is 1.96 times more volatile than Biomarin Pharmaceutical. It trades about 0.06 of its potential returns per unit of risk. Biomarin Pharmaceutical is currently generating about -0.01 per unit of risk. If you would invest 2,692 in Amphastar P on June 10, 2025 and sell it today you would earn a total of 234.00 from holding Amphastar P or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amphastar P vs. Biomarin Pharmaceutical
Performance |
| Timeline |
| Amphastar P |
| Biomarin Pharmaceutical |
Amphastar and Biomarin Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amphastar and Biomarin Pharmaceutical
The main advantage of trading using opposite Amphastar and Biomarin Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphastar position performs unexpectedly, Biomarin Pharmaceutical 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 Biomarin Pharmaceutical will offset losses from the drop in Biomarin Pharmaceutical's long position.| Amphastar vs. ANI Pharmaceuticals | Amphastar vs. Alkermes Plc | Amphastar vs. Dr Reddys Laboratories | Amphastar vs. Collegium Pharmaceutical |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |