Correlation Between Acumen Pharmaceuticals and Repligen
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Repligen 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 Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Repligen, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Repligen 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 Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Repligen.
Diversification Opportunities for Acumen Pharmaceuticals and Repligen
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Acumen and Repligen is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen 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 Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Repligen go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Repligen
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Repligen. In addition to that, Acumen Pharmaceuticals is 1.3 times more volatile than Repligen. It trades about -0.2 of its total potential returns per unit of risk. Repligen is currently generating about 0.11 per unit of volatility. If you would invest 13,953 in Repligen on September 3, 2024 and sell it today you would earn a total of 1,101 from holding Repligen or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. Repligen
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Repligen |
Acumen Pharmaceuticals and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Repligen
The main advantage of trading using opposite Acumen Pharmaceuticals and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Repligen 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 Repligen will offset losses from the drop in Repligen's long position.| Acumen Pharmaceuticals vs. DiaMedica Therapeutics | Acumen Pharmaceuticals vs. Lyra Therapeutics | Acumen Pharmaceuticals vs. Centessa Pharmaceuticals PLC |
| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |