Correlation Between Acumen Pharmaceuticals and Park Electrochemical
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Park Electrochemical 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 Park Electrochemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Park Electrochemical, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Park Electrochemical 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 Park Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Park Electrochemical.
Diversification Opportunities for Acumen Pharmaceuticals and Park Electrochemical
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acumen and Park is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Park Electrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Electrochemical 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 Park Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Electrochemical has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Park Electrochemical go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Park Electrochemical
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Park Electrochemical. In addition to that, Acumen Pharmaceuticals is 2.96 times more volatile than Park Electrochemical. It trades about -0.01 of its total potential returns per unit of risk. Park Electrochemical is currently generating about 0.03 per unit of volatility. If you would invest 1,107 in Park Electrochemical on September 23, 2024 and sell it today you would earn a total of 300.00 from holding Park Electrochemical or generate 27.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Acumen Pharmaceuticals vs. Park Electrochemical
Performance |
Timeline |
Acumen Pharmaceuticals |
Park Electrochemical |
Acumen Pharmaceuticals and Park Electrochemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acumen Pharmaceuticals and Park Electrochemical
The main advantage of trading using opposite Acumen Pharmaceuticals and Park Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Park Electrochemical 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 Park Electrochemical will offset losses from the drop in Park Electrochemical's long position.Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Hookipa Pharma |
Park Electrochemical vs. Curtiss Wright | Park Electrochemical vs. Ehang Holdings | Park Electrochemical vs. GE Aerospace | Park Electrochemical vs. Planet Labs PBC |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Stocks Directory Find actively traded stocks across global markets | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |