Correlation Between SAB Biotherapeutics and Acurx Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both SAB Biotherapeutics and Acurx 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 SAB Biotherapeutics and Acurx Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAB Biotherapeutics and Acurx Pharmaceuticals LLC, you can compare the effects of market volatilities on SAB Biotherapeutics and Acurx 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 SAB Biotherapeutics with a short position of Acurx Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAB Biotherapeutics and Acurx Pharmaceuticals.
Diversification Opportunities for SAB Biotherapeutics and Acurx Pharmaceuticals
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SAB and Acurx is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SAB Biotherapeutics and Acurx Pharmaceuticals LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acurx Pharmaceuticals LLC and SAB Biotherapeutics 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 SAB Biotherapeutics are associated (or correlated) with Acurx Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acurx Pharmaceuticals LLC has no effect on the direction of SAB Biotherapeutics i.e., SAB Biotherapeutics and Acurx Pharmaceuticals go up and down completely randomly.
Pair Corralation between SAB Biotherapeutics and Acurx Pharmaceuticals
Assuming the 90 days horizon SAB Biotherapeutics is expected to generate 17.5 times more return on investment than Acurx Pharmaceuticals. However, SAB Biotherapeutics is 17.5 times more volatile than Acurx Pharmaceuticals LLC. It trades about 0.11 of its potential returns per unit of risk. Acurx Pharmaceuticals LLC is currently generating about -0.01 per unit of risk. If you would invest 7.00 in SAB Biotherapeutics on September 3, 2024 and sell it today you would lose (0.25) from holding SAB Biotherapeutics or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 75.15% |
| Values | Daily Returns |
SAB Biotherapeutics vs. Acurx Pharmaceuticals LLC
Performance |
| Timeline |
| SAB Biotherapeutics |
| Acurx Pharmaceuticals LLC |
SAB Biotherapeutics and Acurx Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAB Biotherapeutics and Acurx Pharmaceuticals
The main advantage of trading using opposite SAB Biotherapeutics and Acurx Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAB Biotherapeutics position performs unexpectedly, Acurx 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 Acurx Pharmaceuticals will offset losses from the drop in Acurx Pharmaceuticals' long position.| SAB Biotherapeutics vs. DiaMedica Therapeutics | SAB Biotherapeutics vs. Lyra Therapeutics | SAB Biotherapeutics vs. Centessa Pharmaceuticals PLC |
| Acurx Pharmaceuticals vs. Aerovate Therapeutics | Acurx Pharmaceuticals vs. Adagene | Acurx Pharmaceuticals vs. Acrivon Therapeutics, Common | Acurx Pharmaceuticals vs. Rezolute |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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