Correlation Between Arrow Financial and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Arrow Financial 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 Arrow Financial and Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Financial and Acumen Pharmaceuticals, you can compare the effects of market volatilities on Arrow Financial 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 Arrow Financial with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Financial and Acumen Pharmaceuticals.
Diversification Opportunities for Arrow Financial and Acumen Pharmaceuticals
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Arrow and Acumen is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Financial and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and Arrow Financial 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 Arrow Financial 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 Arrow Financial i.e., Arrow Financial and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between Arrow Financial and Acumen Pharmaceuticals
Given the investment horizon of 90 days Arrow Financial is expected to generate 0.27 times more return on investment than Acumen Pharmaceuticals. However, Arrow Financial is 3.75 times less risky than Acumen Pharmaceuticals. It trades about -0.23 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.22 per unit of risk. If you would invest 3,373 in Arrow Financial on September 13, 2024 and sell it today you would lose (177.00) from holding Arrow Financial or give up 5.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Financial vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| Arrow Financial |
| Acumen Pharmaceuticals |
Arrow Financial and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Financial and Acumen Pharmaceuticals
The main advantage of trading using opposite Arrow Financial and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Financial 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.| Arrow Financial vs. Heritage Commerce Corp | Arrow Financial vs. Westamerica Bancorporation | Arrow Financial vs. Heritage Financial | Arrow Financial vs. National Bankshares |
| Acumen Pharmaceuticals vs. Puma Biotechnology | Acumen Pharmaceuticals vs. Iovance Biotherapeutics | Acumen Pharmaceuticals vs. Sarepta Therapeutics | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |