Correlation Between Acumen Pharmaceuticals and Ark Restaurants
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Ark Restaurants 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 Ark Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Ark Restaurants Corp, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Ark Restaurants 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 Ark Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Ark Restaurants.
Diversification Opportunities for Acumen Pharmaceuticals and Ark Restaurants
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acumen and Ark is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Ark Restaurants Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ark Restaurants Corp 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 Ark Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ark Restaurants Corp has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Ark Restaurants go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Ark Restaurants
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Ark Restaurants. In addition to that, Acumen Pharmaceuticals is 4.27 times more volatile than Ark Restaurants Corp. It trades about -0.2 of its total potential returns per unit of risk. Ark Restaurants Corp is currently generating about -0.26 per unit of volatility. If you would invest 1,053 in Ark Restaurants Corp on September 3, 2024 and sell it today you would lose (71.00) from holding Ark Restaurants Corp or give up 6.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. Ark Restaurants Corp
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Ark Restaurants Corp |
Acumen Pharmaceuticals and Ark Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Ark Restaurants
The main advantage of trading using opposite Acumen Pharmaceuticals and Ark Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Ark Restaurants 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 Ark Restaurants will offset losses from the drop in Ark Restaurants' long position.| Acumen Pharmaceuticals vs. DiaMedica Therapeutics | Acumen Pharmaceuticals vs. Lyra Therapeutics | Acumen Pharmaceuticals vs. Centessa Pharmaceuticals PLC |
| Ark Restaurants vs. Highway Holdings Limited | Ark Restaurants vs. QCR Holdings | Ark Restaurants vs. Partner Communications | Ark Restaurants vs. Acumen Pharmaceuticals |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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