Correlation Between Lantern Pharma and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Lantern Pharma 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 Lantern Pharma and Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lantern Pharma and Acumen Pharmaceuticals, you can compare the effects of market volatilities on Lantern Pharma 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 Lantern Pharma with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantern Pharma and Acumen Pharmaceuticals.
Diversification Opportunities for Lantern Pharma and Acumen Pharmaceuticals
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lantern and Acumen is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Lantern Pharma and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and Lantern Pharma 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 Lantern Pharma 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 Lantern Pharma i.e., Lantern Pharma and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between Lantern Pharma and Acumen Pharmaceuticals
Given the investment horizon of 90 days Lantern Pharma is expected to generate 0.9 times more return on investment than Acumen Pharmaceuticals. However, Lantern Pharma is 1.11 times less risky than Acumen Pharmaceuticals. It trades about -0.13 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.19 per unit of risk. If you would invest 366.00 in Lantern Pharma on August 29, 2024 and sell it today you would lose (59.00) from holding Lantern Pharma or give up 16.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lantern Pharma vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| Lantern Pharma |
| Acumen Pharmaceuticals |
Lantern Pharma and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lantern Pharma and Acumen Pharmaceuticals
The main advantage of trading using opposite Lantern Pharma and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantern Pharma 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.| Lantern Pharma vs. Bright Minds Biosciences | Lantern Pharma vs. HP Inc | Lantern Pharma vs. Intel | Lantern Pharma vs. Chevron Corp |
| Acumen Pharmaceuticals vs. Bright Minds Biosciences | Acumen Pharmaceuticals vs. HP Inc | Acumen Pharmaceuticals vs. Intel | Acumen Pharmaceuticals vs. Chevron Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |