Correlation Between Acumen Pharmaceuticals and Evolus
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Evolus 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 Evolus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Evolus Inc, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Evolus 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 Evolus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Evolus.
Diversification Opportunities for Acumen Pharmaceuticals and Evolus
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Acumen and Evolus is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Evolus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolus Inc 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 Evolus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolus Inc has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Evolus go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Evolus
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Evolus. In addition to that, Acumen Pharmaceuticals is 1.24 times more volatile than Evolus Inc. It trades about -0.05 of its total potential returns per unit of risk. Evolus Inc is currently generating about 0.04 per unit of volatility. If you would invest 1,043 in Evolus Inc on November 9, 2024 and sell it today you would earn a total of 298.00 from holding Evolus Inc or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. Evolus Inc
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Evolus Inc |
Acumen Pharmaceuticals and Evolus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Evolus
The main advantage of trading using opposite Acumen Pharmaceuticals and Evolus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Evolus 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 Evolus will offset losses from the drop in Evolus' long position.| Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Hookipa Pharma |
| Evolus vs. Collegium Pharmaceutical | Evolus vs. Phibro Animal Health | Evolus vs. ANI Pharmaceuticals | Evolus vs. Procaps Group SA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |