Correlation Between Fortress Biotech and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Fortress Biotech 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 Fortress Biotech and Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Biotech and Acumen Pharmaceuticals, you can compare the effects of market volatilities on Fortress Biotech 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 Fortress Biotech with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and Acumen Pharmaceuticals.
Diversification Opportunities for Fortress Biotech and Acumen Pharmaceuticals
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fortress and Acumen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and Fortress Biotech 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 Fortress Biotech 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 Fortress Biotech i.e., Fortress Biotech and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between Fortress Biotech and Acumen Pharmaceuticals
Given the investment horizon of 90 days Fortress Biotech is expected to generate 0.95 times more return on investment than Acumen Pharmaceuticals. However, Fortress Biotech is 1.05 times less risky than Acumen Pharmaceuticals. It trades about 0.05 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about 0.0 per unit of risk. If you would invest 184.00 in Fortress Biotech on September 2, 2024 and sell it today you would earn a total of 29.00 from holding Fortress Biotech or generate 15.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortress Biotech vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| Fortress Biotech |
| Acumen Pharmaceuticals |
Fortress Biotech and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Biotech and Acumen Pharmaceuticals
The main advantage of trading using opposite Fortress Biotech and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech 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.| Fortress Biotech vs. Tff Pharmaceuticals | Fortress Biotech vs. Eliem Therapeutics | Fortress Biotech vs. Inhibrx | Fortress Biotech vs. Enliven Therapeutics |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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