Correlation Between Acasti Pharma and NextCure
Can any of the company-specific risk be diversified away by investing in both Acasti Pharma and NextCure 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 Acasti Pharma and NextCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acasti Pharma and NextCure, you can compare the effects of market volatilities on Acasti Pharma and NextCure 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 Acasti Pharma with a short position of NextCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acasti Pharma and NextCure.
Diversification Opportunities for Acasti Pharma and NextCure
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acasti and NextCure is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Acasti Pharma and NextCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextCure and Acasti Pharma 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 Acasti Pharma are associated (or correlated) with NextCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextCure has no effect on the direction of Acasti Pharma i.e., Acasti Pharma and NextCure go up and down completely randomly.
Pair Corralation between Acasti Pharma and NextCure
Given the investment horizon of 90 days Acasti Pharma is expected to generate 0.95 times more return on investment than NextCure. However, Acasti Pharma is 1.05 times less risky than NextCure. It trades about 0.06 of its potential returns per unit of risk. NextCure is currently generating about -0.01 per unit of risk. If you would invest 290.00 in Acasti Pharma on September 1, 2024 and sell it today you would earn a total of 47.00 from holding Acasti Pharma or generate 16.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.75% |
| Values | Daily Returns |
Acasti Pharma vs. NextCure
Performance |
| Timeline |
| Acasti Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| NextCure |
Acasti Pharma and NextCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acasti Pharma and NextCure
The main advantage of trading using opposite Acasti Pharma and NextCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acasti Pharma position performs unexpectedly, NextCure 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 NextCure will offset losses from the drop in NextCure's long position.| Acasti Pharma vs. Tonix Pharmaceuticals Holding | Acasti Pharma vs. Jaguar Animal Health | Acasti Pharma vs. Ibio Inc | Acasti Pharma vs. Akari Therapeutics PLC |
| NextCure vs. CytomX Therapeutics | NextCure vs. Spero Therapeutics | NextCure vs. Instil Bio | NextCure vs. Assembly Biosciences |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |