Correlation Between Acumen Pharmaceuticals and Jack In

Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Jack In 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 Acumen Pharmaceuticals and Jack In into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Acumen Pharmaceuticals and Jack In The, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Jack In 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 Acumen Pharmaceuticals with a short position of Jack In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Jack In.

Diversification Opportunities for Acumen Pharmaceuticals and Jack In

0.7

Correlation Coefficient

Acumen Pharmaceuticals  Jack In

Poor diversification

The 3 months correlation between Acumen and Jack is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Jack In The in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack In and Acumen Pharmaceuticals 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 Acumen Pharmaceuticals are associated (or correlated) with Jack In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack In has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Jack In go up and down completely randomly.

Pair Corralation between Acumen Pharmaceuticals and Jack In

Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Jack In. In addition to that, Acumen Pharmaceuticals is 1.12 times more volatile than Jack In The. It trades about -0.16 of its total potential returns per unit of risk. Jack In The is currently generating about -0.11 per unit of volatility. If you would invest  3,996  in Jack In The on December 25, 2024 and sell it today you would lose (934.00) from holding Jack In The or give up 23.37% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Acumen Pharmaceuticals  vs.  Jack In The

Acumen Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acumen Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Jack In

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jack In The has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Acumen Pharmaceuticals and Jack In

The main advantage of trading using opposite Acumen Pharmaceuticals and Jack In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Jack In 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 Jack In will offset losses from the drop in Jack In's long position.

The idea behind Acumen Pharmaceuticals and Jack In The pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.