Correlation Between 3M and Acasti Pharma
Can any of the company-specific risk be diversified away by investing in both 3M and Acasti Pharma 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 3M and Acasti Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3M Company and Acasti Pharma, you can compare the effects of market volatilities on 3M and Acasti Pharma 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 3M with a short position of Acasti Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and Acasti Pharma.
Diversification Opportunities for 3M and Acasti Pharma
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 3M and Acasti is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and Acasti Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acasti Pharma and 3M 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 3M Company are associated (or correlated) with Acasti Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acasti Pharma has no effect on the direction of 3M i.e., 3M and Acasti Pharma go up and down completely randomly.
Pair Corralation between 3M and Acasti Pharma
If you would invest 12,409 in 3M Company on August 26, 2024 and sell it today you would earn a total of 433.00 from holding 3M Company or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 9.09% |
| Values | Daily Returns |
3M Company vs. Acasti Pharma
Performance |
| Timeline |
| 3M Company |
| Acasti Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
3M and Acasti Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and Acasti Pharma
The main advantage of trading using opposite 3M and Acasti Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, Acasti Pharma 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 Acasti Pharma will offset losses from the drop in Acasti Pharma's long position.| 3M vs. MDU Resources Group | 3M vs. Valmont Industries | 3M vs. Griffon | 3M vs. Compass Diversified Holdings |
| Acasti Pharma vs. Tonix Pharmaceuticals Holding | Acasti Pharma vs. Jaguar Animal Health | Acasti Pharma vs. Ibio Inc | Acasti Pharma vs. Akari Therapeutics PLC |
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.
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