Correlation Between Acumen Pharmaceuticals and Strategic Education

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Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Strategic Education 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 Strategic Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Strategic Education, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Strategic Education 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 Strategic Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Strategic Education.

Diversification Opportunities for Acumen Pharmaceuticals and Strategic Education

AcumenStrategicDiversified AwayAcumenStrategicDiversified Away100%
-0.19
  Correlation Coefficient

Good diversification

The 3 months correlation between Acumen and Strategic is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Strategic Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Education 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 Strategic Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Education has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Strategic Education go up and down completely randomly.

Pair Corralation between Acumen Pharmaceuticals and Strategic Education

Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Strategic Education. In addition to that, Acumen Pharmaceuticals is 2.98 times more volatile than Strategic Education. It trades about -0.02 of its total potential returns per unit of risk. Strategic Education is currently generating about 0.03 per unit of volatility. If you would invest  8,147  in Strategic Education on November 26, 2024 and sell it today you would earn a total of  1,692  from holding Strategic Education or generate 20.77% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Acumen Pharmaceuticals  vs.  Strategic Education

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -50-40-30-20-100
JavaScript chart by amCharts 3.21.15ABOS STRA
       Timeline  
Acumen Pharmaceuticals 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Acumen Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.41.61.822.22.4
Strategic Education 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Over the last 90 days Strategic Education has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Strategic Education is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb9092949698100102104

Acumen Pharmaceuticals and Strategic Education Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.97-5.22-3.47-1.720.02341.42.84.215.61 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15ABOS STRA
       Returns  

Pair Trading with Acumen Pharmaceuticals and Strategic Education

The main advantage of trading using opposite Acumen Pharmaceuticals and Strategic Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Strategic Education 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 Strategic Education will offset losses from the drop in Strategic Education's long position.
The idea behind Acumen Pharmaceuticals and Strategic Education pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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