Correlation Between Acumen Pharmaceuticals and MOGU

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

By analyzing existing cross correlation between Acumen Pharmaceuticals and MOGU Inc, you can compare the effects of market volatilities on Acumen Pharmaceuticals and MOGU 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 MOGU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and MOGU.

Diversification Opportunities for Acumen Pharmaceuticals and MOGU

-0.48

Correlation Coefficient

Acumen Pharmaceuticals  MOGU

Very good diversification

The 3 months correlation between Acumen and MOGU is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and MOGU Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOGU Inc 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 MOGU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOGU Inc has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and MOGU go up and down completely randomly.

Pair Corralation between Acumen Pharmaceuticals and MOGU

Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the MOGU. In addition to that, Acumen Pharmaceuticals is 1.08 times more volatile than MOGU Inc. It trades about -0.05 of its total potential returns per unit of risk. MOGU Inc is currently generating about 0.06 per unit of volatility. If you would invest  211.00  in MOGU Inc on October 10, 2024 and sell it today you would earn a total of  20.00  from holding MOGU Inc or generate 9.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Acumen Pharmaceuticals  vs.  MOGU Inc

Acumen Pharmaceuticals

Risk-Adjusted Performance

0 of 100

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 February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

MOGU Inc

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MOGU Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal technical and fundamental indicators, MOGU unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Acumen Pharmaceuticals and MOGU

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

The idea behind Acumen Pharmaceuticals and MOGU Inc 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.