Correlation Between Acumen Pharmaceuticals and WK Kellogg
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and WK Kellogg 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 WK Kellogg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and WK Kellogg Co, you can compare the effects of market volatilities on Acumen Pharmaceuticals and WK Kellogg 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 WK Kellogg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and WK Kellogg.
Diversification Opportunities for Acumen Pharmaceuticals and WK Kellogg
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acumen and KLG is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and WK Kellogg Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WK Kellogg 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 WK Kellogg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WK Kellogg has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and WK Kellogg go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and WK Kellogg
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to generate 1.91 times more return on investment than WK Kellogg. However, Acumen Pharmaceuticals is 1.91 times more volatile than WK Kellogg Co. It trades about -0.06 of its potential returns per unit of risk. WK Kellogg Co is currently generating about -0.23 per unit of risk. If you would invest 177.00 in Acumen Pharmaceuticals on October 23, 2024 and sell it today you would lose (12.00) from holding Acumen Pharmaceuticals or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. WK Kellogg Co
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| WK Kellogg |
Acumen Pharmaceuticals and WK Kellogg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and WK Kellogg
The main advantage of trading using opposite Acumen Pharmaceuticals and WK Kellogg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, WK Kellogg 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 WK Kellogg will offset losses from the drop in WK Kellogg's long position.| Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Hookipa Pharma |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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