Correlation Between BCB Bancorp and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both BCB Bancorp 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 BCB Bancorp and Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCB Bancorp and Acumen Pharmaceuticals, you can compare the effects of market volatilities on BCB Bancorp 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 BCB Bancorp with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCB Bancorp and Acumen Pharmaceuticals.
Diversification Opportunities for BCB Bancorp and Acumen Pharmaceuticals
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between BCB and Acumen is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding BCB Bancorp and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and BCB Bancorp 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 BCB Bancorp 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 BCB Bancorp i.e., BCB Bancorp and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between BCB Bancorp and Acumen Pharmaceuticals
Given the investment horizon of 90 days BCB Bancorp is expected to generate 0.45 times more return on investment than Acumen Pharmaceuticals. However, BCB Bancorp is 2.22 times less risky than Acumen Pharmaceuticals. It trades about 0.04 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.03 per unit of risk. If you would invest 1,236 in BCB Bancorp on September 13, 2024 and sell it today you would earn a total of 35.00 from holding BCB Bancorp or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
BCB Bancorp vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| BCB Bancorp |
| Acumen Pharmaceuticals |
BCB Bancorp and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCB Bancorp and Acumen Pharmaceuticals
The main advantage of trading using opposite BCB Bancorp and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCB Bancorp 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.| BCB Bancorp vs. Provident Financial Services | BCB Bancorp vs. First Mid Illinois | BCB Bancorp vs. ConnectOne Bancorp | BCB Bancorp vs. Finward Bancorp |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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