Correlation Between Acumen Pharmaceuticals and Entegris
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Entegris 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 Entegris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Entegris, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Entegris 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 Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Entegris.
Diversification Opportunities for Acumen Pharmaceuticals and Entegris
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Acumen and Entegris is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris 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 Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Entegris go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Entegris
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Entegris. In addition to that, Acumen Pharmaceuticals is 1.78 times more volatile than Entegris. It trades about -0.04 of its total potential returns per unit of risk. Entegris is currently generating about -0.01 per unit of volatility. If you would invest 11,946 in Entegris on November 3, 2024 and sell it today you would lose (1,792) from holding Entegris or give up 15.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. Entegris
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Entegris |
Acumen Pharmaceuticals and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Entegris
The main advantage of trading using opposite Acumen Pharmaceuticals and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Entegris 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 Entegris will offset losses from the drop in Entegris' long position.| Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Hookipa Pharma |
| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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