Correlation Between Acumen Pharmaceuticals and Cue Biopharma
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Cue Biopharma 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 Cue Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Cue Biopharma, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Cue Biopharma 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 Cue Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Cue Biopharma.
Diversification Opportunities for Acumen Pharmaceuticals and Cue Biopharma
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Acumen and Cue is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Cue Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Biopharma 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 Cue Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Biopharma has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Cue Biopharma go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Cue Biopharma
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Cue Biopharma. But the stock apears to be less risky and, when comparing its historical volatility, Acumen Pharmaceuticals is 1.79 times less risky than Cue Biopharma. The stock trades about -0.02 of its potential returns per unit of risk. The Cue Biopharma is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 264.00 in Cue Biopharma on August 25, 2024 and sell it today you would lose (162.00) from holding Cue Biopharma or give up 61.36% 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. Cue Biopharma
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Cue Biopharma |
Acumen Pharmaceuticals and Cue Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Cue Biopharma
The main advantage of trading using opposite Acumen Pharmaceuticals and Cue Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Cue Biopharma 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 Cue Biopharma will offset losses from the drop in Cue Biopharma's long position.| Acumen Pharmaceuticals vs. Eliem Therapeutics | Acumen Pharmaceuticals vs. HCW Biologics | Acumen Pharmaceuticals vs. Scpharmaceuticals | Acumen Pharmaceuticals vs. Milestone Pharmaceuticals |
| Cue Biopharma vs. Coya Therapeutics, Common | Cue Biopharma vs. Lantern Pharma | Cue Biopharma vs. Fennec Pharmaceuticals | Cue Biopharma vs. Eliem 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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