Correlation Between Marine Bancorp and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Marine 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 Marine 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 Marine Bancorp of and Acumen Pharmaceuticals, you can compare the effects of market volatilities on Marine 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 Marine Bancorp with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Bancorp and Acumen Pharmaceuticals.
Diversification Opportunities for Marine Bancorp and Acumen Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marine and Acumen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marine Bancorp of and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and Marine 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 Marine Bancorp of 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 Marine Bancorp i.e., Marine Bancorp and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between Marine Bancorp and Acumen Pharmaceuticals
Given the investment horizon of 90 days Marine Bancorp of is expected to generate 0.05 times more return on investment than Acumen Pharmaceuticals. However, Marine Bancorp of is 18.2 times less risky than Acumen Pharmaceuticals. It trades about 0.26 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.28 per unit of risk. If you would invest 3,950 in Marine Bancorp of on September 15, 2024 and sell it today you would earn a total of 50.00 from holding Marine Bancorp of or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Marine Bancorp of vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| Marine Bancorp |
| Acumen Pharmaceuticals |
Marine Bancorp and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Bancorp and Acumen Pharmaceuticals
The main advantage of trading using opposite Marine Bancorp and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine 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.| Marine Bancorp vs. Acumen Pharmaceuticals | Marine Bancorp vs. Valneva SE ADR | Marine Bancorp vs. CECO Environmental Corp | Marine Bancorp vs. Highway Holdings Limited |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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