Correlation Between Acumen Pharmaceuticals and Lyell Immunopharma
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Lyell Immunopharma 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 Lyell Immunopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Lyell Immunopharma, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Lyell Immunopharma 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 Lyell Immunopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Lyell Immunopharma.
Diversification Opportunities for Acumen Pharmaceuticals and Lyell Immunopharma
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Acumen and Lyell is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Lyell Immunopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyell Immunopharma 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 Lyell Immunopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyell Immunopharma has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Lyell Immunopharma go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Lyell Immunopharma
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Lyell Immunopharma. But the stock apears to be less risky and, when comparing its historical volatility, Acumen Pharmaceuticals is 1.24 times less risky than Lyell Immunopharma. The stock trades about -0.25 of its potential returns per unit of risk. The Lyell Immunopharma is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Lyell Immunopharma on December 1, 2024 and sell it today you would lose (29.00) from holding Lyell Immunopharma or give up 29.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Acumen Pharmaceuticals vs. Lyell Immunopharma
Performance |
Timeline |
Acumen Pharmaceuticals |
Lyell Immunopharma |
Acumen Pharmaceuticals and Lyell Immunopharma Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acumen Pharmaceuticals and Lyell Immunopharma
The main advantage of trading using opposite Acumen Pharmaceuticals and Lyell Immunopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Lyell Immunopharma 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 Lyell Immunopharma will offset losses from the drop in Lyell Immunopharma's long position.Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Hookipa Pharma |
Lyell Immunopharma vs. Cullinan Oncology LLC | Lyell Immunopharma vs. Monte Rosa Therapeutics | Lyell Immunopharma vs. Revolution Medicines | Lyell Immunopharma vs. Nkarta Inc |
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.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |