Correlation Between Abercrombie Fitch and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Abercrombie Fitch 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 Abercrombie Fitch and Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abercrombie Fitch and Acumen Pharmaceuticals, you can compare the effects of market volatilities on Abercrombie Fitch 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 Abercrombie Fitch with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abercrombie Fitch and Acumen Pharmaceuticals.
Diversification Opportunities for Abercrombie Fitch and Acumen Pharmaceuticals
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Abercrombie and Acumen is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Abercrombie Fitch and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and Abercrombie Fitch 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 Abercrombie Fitch 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 Abercrombie Fitch i.e., Abercrombie Fitch and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between Abercrombie Fitch and Acumen Pharmaceuticals
Considering the 90-day investment horizon Abercrombie Fitch is expected to generate 0.68 times more return on investment than Acumen Pharmaceuticals. However, Abercrombie Fitch is 1.48 times less risky than Acumen Pharmaceuticals. It trades about 0.2 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.29 per unit of risk. If you would invest 13,721 in Abercrombie Fitch on October 12, 2024 and sell it today you would earn a total of 1,441 from holding Abercrombie Fitch or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abercrombie Fitch vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| Abercrombie Fitch |
| Acumen Pharmaceuticals |
Abercrombie Fitch and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abercrombie Fitch and Acumen Pharmaceuticals
The main advantage of trading using opposite Abercrombie Fitch and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abercrombie Fitch 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.| Abercrombie Fitch vs. Urban Outfitters | Abercrombie Fitch vs. Foot Locker | Abercrombie Fitch vs. Childrens Place | Abercrombie Fitch vs. American Eagle Outfitters |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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