Correlation Between Aehr Test and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Aehr Test and Acumen Pharmaceuticals 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 Aehr Test and Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aehr Test Systems and Acumen Pharmaceuticals, you can compare the effects of market volatilities on Aehr Test and Acumen Pharmaceuticals 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 Aehr Test with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and Acumen Pharmaceuticals.
Diversification Opportunities for Aehr Test and Acumen Pharmaceuticals
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aehr and Acumen is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and Aehr Test 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 Aehr Test Systems are associated (or correlated) with Acumen Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acumen Pharmaceuticals has no effect on the direction of Aehr Test i.e., Aehr Test and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between Aehr Test and Acumen Pharmaceuticals
Given the investment horizon of 90 days Aehr Test Systems is expected to generate 1.2 times more return on investment than Acumen Pharmaceuticals. However, Aehr Test is 1.2 times more volatile than Acumen Pharmaceuticals. It trades about 0.03 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about 0.0 per unit of risk. If you would invest 1,136 in Aehr Test Systems on September 2, 2024 and sell it today you would earn a total of 53.00 from holding Aehr Test Systems or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aehr Test Systems vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| Aehr Test Systems |
| Acumen Pharmaceuticals |
Aehr Test and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and Acumen Pharmaceuticals
The main advantage of trading using opposite Aehr Test and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test position performs unexpectedly, Acumen Pharmaceuticals 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 Acumen Pharmaceuticals will offset losses from the drop in Acumen Pharmaceuticals' long position.| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
| Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Hookipa Pharma |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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