Correlation Between Acumen Pharmaceuticals and Fast Retailing
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Fast Retailing 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 Fast Retailing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Fast Retailing Co, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Fast Retailing 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 Fast Retailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Fast Retailing.
Diversification Opportunities for Acumen Pharmaceuticals and Fast Retailing
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acumen and Fast is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Fast Retailing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Retailing 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 Fast Retailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Retailing has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Fast Retailing go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Fast Retailing
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Fast Retailing. But the stock apears to be less risky and, when comparing its historical volatility, Acumen Pharmaceuticals is 2.02 times less risky than Fast Retailing. The stock trades about -0.01 of its potential returns per unit of risk. The Fast Retailing Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 19,143 in Fast Retailing Co on August 27, 2024 and sell it today you would earn a total of 12,192 from holding Fast Retailing Co or generate 63.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.85% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. Fast Retailing Co
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Fast Retailing |
Acumen Pharmaceuticals and Fast Retailing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Fast Retailing
The main advantage of trading using opposite Acumen Pharmaceuticals and Fast Retailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Fast Retailing 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 Fast Retailing will offset losses from the drop in Fast Retailing's long position.| Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Hookipa Pharma |
| Fast Retailing vs. Reitmans Limited | Fast Retailing vs. Reitmans Limited | Fast Retailing vs. Lulus Fashion Lounge | Fast Retailing vs. Duluth Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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