Correlation Between Ainos and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Ainos 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 Ainos and Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainos Inc and Acumen Pharmaceuticals, you can compare the effects of market volatilities on Ainos 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 Ainos with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainos and Acumen Pharmaceuticals.
Diversification Opportunities for Ainos and Acumen Pharmaceuticals
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ainos and Acumen is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ainos Inc and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and Ainos 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 Ainos Inc 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 Ainos i.e., Ainos and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between Ainos and Acumen Pharmaceuticals
Assuming the 90 days horizon Ainos Inc is expected to generate 10.38 times more return on investment than Acumen Pharmaceuticals. However, Ainos is 10.38 times more volatile than Acumen Pharmaceuticals. It trades about 0.58 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.32 per unit of risk. If you would invest 2.60 in Ainos Inc on September 12, 2024 and sell it today you would earn a total of 2.51 from holding Ainos Inc or generate 96.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 14.29% |
| Values | Daily Returns |
Ainos Inc vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| Ainos Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Acumen Pharmaceuticals |
Ainos and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainos and Acumen Pharmaceuticals
The main advantage of trading using opposite Ainos and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainos 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.The idea behind Ainos Inc and Acumen Pharmaceuticals 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.| Acumen Pharmaceuticals vs. Equillium | Acumen Pharmaceuticals vs. DiaMedica Therapeutics | Acumen Pharmaceuticals vs. Valneva SE ADR | Acumen Pharmaceuticals vs. Vivani Medical |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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