Correlation Between NextCure and Acasti Pharma
Can any of the company-specific risk be diversified away by investing in both NextCure 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 NextCure and Acasti Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NextCure and Acasti Pharma, you can compare the effects of market volatilities on NextCure 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 NextCure with a short position of Acasti Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of NextCure and Acasti Pharma.
Diversification Opportunities for NextCure and Acasti Pharma
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NextCure and Acasti is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding NextCure and Acasti Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acasti Pharma and NextCure 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 NextCure 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 NextCure i.e., NextCure and Acasti Pharma go up and down completely randomly.
Pair Corralation between NextCure and Acasti Pharma
If you would invest 337.00 in Acasti Pharma on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Acasti Pharma or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
NextCure vs. Acasti Pharma
Performance |
| Timeline |
| NextCure |
| Acasti Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
NextCure and Acasti Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NextCure and Acasti Pharma
The main advantage of trading using opposite NextCure and Acasti Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NextCure 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.| NextCure vs. CytomX Therapeutics | NextCure vs. Spero Therapeutics | NextCure vs. Instil Bio | NextCure vs. Assembly Biosciences |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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