Correlation Between Acumen Pharmaceuticals and Chimerix
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Chimerix 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 Chimerix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Chimerix, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Chimerix 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 Chimerix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Chimerix.
Diversification Opportunities for Acumen Pharmaceuticals and Chimerix
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Acumen and Chimerix is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Chimerix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimerix 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 Chimerix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimerix has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Chimerix go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Chimerix
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Chimerix. In addition to that, Acumen Pharmaceuticals is 1.6 times more volatile than Chimerix. It trades about -0.18 of its total potential returns per unit of risk. Chimerix is currently generating about -0.02 per unit of volatility. If you would invest 93.00 in Chimerix on August 30, 2024 and sell it today you would lose (2.50) from holding Chimerix or give up 2.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. Chimerix
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Chimerix |
Acumen Pharmaceuticals and Chimerix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Chimerix
The main advantage of trading using opposite Acumen Pharmaceuticals and Chimerix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Chimerix 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 Chimerix will offset losses from the drop in Chimerix's long position.| Acumen Pharmaceuticals vs. Bright Minds Biosciences | Acumen Pharmaceuticals vs. HP Inc | Acumen Pharmaceuticals vs. Intel | Acumen Pharmaceuticals vs. Chevron Corp |
| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil Bio |
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
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |