Correlation Between Acumen Pharmaceuticals and Genfit
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Genfit 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 Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Genfit, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Genfit.
Diversification Opportunities for Acumen Pharmaceuticals and Genfit
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Acumen and Genfit is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Genfit go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Genfit
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Genfit. In addition to that, Acumen Pharmaceuticals is 1.25 times more volatile than Genfit. It trades about -0.24 of its total potential returns per unit of risk. Genfit is currently generating about -0.03 per unit of volatility. If you would invest 383.00 in Genfit on November 3, 2024 and sell it today you would lose (10.00) from holding Genfit or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. Genfit
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Genfit |
Acumen Pharmaceuticals and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Genfit
The main advantage of trading using opposite Acumen Pharmaceuticals and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit's long position.| Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Hookipa Pharma |
| Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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