Correlation Between Acumen Pharmaceuticals and Annexon
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Annexon 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 Acumen Pharmaceuticals and Annexon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Annexon, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Annexon 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 Acumen Pharmaceuticals with a short position of Annexon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Annexon.
Diversification Opportunities for Acumen Pharmaceuticals and Annexon
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Acumen and Annexon is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Annexon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexon and Acumen 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 Acumen Pharmaceuticals are associated (or correlated) with Annexon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annexon has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Annexon go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Annexon
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to generate 1.77 times more return on investment than Annexon. However, Acumen Pharmaceuticals is 1.77 times more volatile than Annexon. It trades about -0.19 of its potential returns per unit of risk. Annexon is currently generating about -0.5 per unit of risk. If you would invest 289.00 in Acumen Pharmaceuticals on August 28, 2024 and sell it today you would lose (69.00) from holding Acumen Pharmaceuticals or give up 23.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. Annexon
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Annexon |
Acumen Pharmaceuticals and Annexon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Annexon
The main advantage of trading using opposite Acumen Pharmaceuticals and Annexon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Annexon 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 Annexon will offset losses from the drop in Annexon's long position.| Acumen Pharmaceuticals vs. Eliem Therapeutics | Acumen Pharmaceuticals vs. Scpharmaceuticals | Acumen Pharmaceuticals vs. Milestone Pharmaceuticals | Acumen Pharmaceuticals vs. Seres Therapeutics |
| Annexon vs. Eliem Therapeutics | Annexon vs. Scpharmaceuticals | Annexon vs. Milestone Pharmaceuticals | Annexon vs. Seres Therapeutics |
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 Stocks Directory module to find actively traded stocks across global markets.
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