Correlation Between Acumen Pharmaceuticals and Yum China
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Yum China 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 Yum China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Yum China Holdings, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Yum China 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 Yum China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Yum China.
Diversification Opportunities for Acumen Pharmaceuticals and Yum China
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Acumen and Yum is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Yum China Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yum China Holdings 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 Yum China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yum China Holdings has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Yum China go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Yum China
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Yum China. In addition to that, Acumen Pharmaceuticals is 2.89 times more volatile than Yum China Holdings. It trades about -0.17 of its total potential returns per unit of risk. Yum China Holdings is currently generating about -0.07 per unit of volatility. If you would invest 4,814 in Yum China Holdings on September 4, 2024 and sell it today you would lose (153.00) from holding Yum China Holdings or give up 3.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. Yum China Holdings
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Yum China Holdings |
Acumen Pharmaceuticals and Yum China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Yum China
The main advantage of trading using opposite Acumen Pharmaceuticals and Yum China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Yum China 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 Yum China will offset losses from the drop in Yum China's long position.| Acumen Pharmaceuticals vs. Candel Therapeutics | Acumen Pharmaceuticals vs. Cingulate Warrants | Acumen Pharmaceuticals vs. Unicycive Therapeutics | Acumen Pharmaceuticals vs. Cardio Diagnostics Holdings |
| Yum China vs. Hyatt Hotels | Yum China vs. Smart Share Global | Yum China vs. Sweetgreen | Yum China vs. Wyndham Hotels Resorts |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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