Correlation Between Orphazyme A/S and Lowell Farms

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Can any of the company-specific risk be diversified away by investing in both Orphazyme A/S and Lowell Farms 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 Orphazyme A/S and Lowell Farms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orphazyme AS and Lowell Farms, you can compare the effects of market volatilities on Orphazyme A/S and Lowell Farms 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 Orphazyme A/S with a short position of Lowell Farms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orphazyme A/S and Lowell Farms.

Diversification Opportunities for Orphazyme A/S and Lowell Farms

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Orphazyme A/S and Lowell Farms

If you would invest  1.00  in Lowell Farms on August 29, 2025 and sell it today you would lose (0.99) from holding Lowell Farms or give up 99.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy29.69%
ValuesDaily Returns

Orphazyme AS  vs.  Lowell Farms

 Performance 
       Timeline  
Orphazyme A/S 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Orphazyme AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Orphazyme A/S is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
Lowell Farms 

Risk-Adjusted Performance

High

 
Weak
 
Strong
Over the last 90 days Lowell Farms has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly unsteady essential indicators, Lowell Farms reported solid returns over the last few months and may actually be approaching a breakup point.

Orphazyme A/S and Lowell Farms Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Orphazyme A/S and Lowell Farms

The main advantage of trading using opposite Orphazyme A/S and Lowell Farms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orphazyme A/S position performs unexpectedly, Lowell Farms 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 Lowell Farms will offset losses from the drop in Lowell Farms' long position.
The idea behind Orphazyme AS and Lowell Farms 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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