Correlation Between AnaptysBio and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both AnaptysBio 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 AnaptysBio and Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AnaptysBio and Acumen Pharmaceuticals, you can compare the effects of market volatilities on AnaptysBio 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 AnaptysBio with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of AnaptysBio and Acumen Pharmaceuticals.
Diversification Opportunities for AnaptysBio and Acumen Pharmaceuticals
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AnaptysBio and Acumen is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding AnaptysBio and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and AnaptysBio 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 AnaptysBio 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 AnaptysBio i.e., AnaptysBio and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between AnaptysBio and Acumen Pharmaceuticals
Given the investment horizon of 90 days AnaptysBio is expected to under-perform the Acumen Pharmaceuticals. In addition to that, AnaptysBio is 1.38 times more volatile than Acumen Pharmaceuticals. It trades about -0.18 of its total potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.14 per unit of volatility. If you would invest 290.00 in Acumen Pharmaceuticals on August 26, 2024 and sell it today you would lose (53.00) from holding Acumen Pharmaceuticals or give up 18.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AnaptysBio vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| AnaptysBio |
| Acumen Pharmaceuticals |
AnaptysBio and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AnaptysBio and Acumen Pharmaceuticals
The main advantage of trading using opposite AnaptysBio and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AnaptysBio 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.| AnaptysBio vs. Crinetics Pharmaceuticals | AnaptysBio vs. Rhythm Pharmaceuticals | AnaptysBio vs. Kura Oncology | AnaptysBio vs. CytomX Therapeutics |
| Acumen Pharmaceuticals vs. Eliem Therapeutics | Acumen Pharmaceuticals vs. HCW Biologics | Acumen Pharmaceuticals vs. Scpharmaceuticals | Acumen Pharmaceuticals vs. Milestone Pharmaceuticals |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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