Correlation Between Acumen Pharmaceuticals and SoFi Technologies
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and SoFi Technologies 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 SoFi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and SoFi Technologies, you can compare the effects of market volatilities on Acumen Pharmaceuticals and SoFi Technologies 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 SoFi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and SoFi Technologies.
Diversification Opportunities for Acumen Pharmaceuticals and SoFi Technologies
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Acumen and SoFi is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and SoFi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoFi Technologies 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 SoFi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoFi Technologies has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and SoFi Technologies go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and SoFi Technologies
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the SoFi Technologies. In addition to that, Acumen Pharmaceuticals is 1.43 times more volatile than SoFi Technologies. It trades about 0.0 of its total potential returns per unit of risk. SoFi Technologies is currently generating about 0.53 per unit of volatility. If you would invest 783.00 in SoFi Technologies on September 3, 2024 and sell it today you would earn a total of 858.00 from holding SoFi Technologies or generate 109.58% 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. SoFi Technologies
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| SoFi Technologies |
Acumen Pharmaceuticals and SoFi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and SoFi Technologies
The main advantage of trading using opposite Acumen Pharmaceuticals and SoFi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, SoFi Technologies 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 SoFi Technologies will offset losses from the drop in SoFi Technologies' long position.| Acumen Pharmaceuticals vs. DiaMedica Therapeutics | Acumen Pharmaceuticals vs. Lyra Therapeutics | Acumen Pharmaceuticals vs. Centessa Pharmaceuticals PLC |
| SoFi Technologies vs. Highway Holdings Limited | SoFi Technologies vs. QCR Holdings | SoFi Technologies vs. Partner Communications | SoFi Technologies 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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