Correlation Between Acumen Pharmaceuticals and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Sweetgreen 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 Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Sweetgreen, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Sweetgreen 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 Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Sweetgreen.
Diversification Opportunities for Acumen Pharmaceuticals and Sweetgreen
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Acumen and Sweetgreen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen 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 Sweetgreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweetgreen has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Sweetgreen go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Sweetgreen
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to generate 11.68 times less return on investment than Sweetgreen. In addition to that, Acumen Pharmaceuticals is 1.0 times more volatile than Sweetgreen. It trades about 0.0 of its total potential returns per unit of risk. Sweetgreen is currently generating about 0.05 per unit of volatility. If you would invest 3,498 in Sweetgreen on September 3, 2024 and sell it today you would earn a total of 600.00 from holding Sweetgreen or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. Sweetgreen
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Sweetgreen |
Acumen Pharmaceuticals and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Sweetgreen
The main advantage of trading using opposite Acumen Pharmaceuticals and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Sweetgreen 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 Sweetgreen will offset losses from the drop in Sweetgreen's long position.| Acumen Pharmaceuticals vs. DiaMedica Therapeutics | Acumen Pharmaceuticals vs. Lyra Therapeutics | Acumen Pharmaceuticals vs. Centessa Pharmaceuticals PLC |
| Sweetgreen vs. Highway Holdings Limited | Sweetgreen vs. QCR Holdings | Sweetgreen vs. Partner Communications | Sweetgreen vs. Acumen 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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