Correlation Between Acumen Pharmaceuticals and 594918BS2

Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and 594918BS2 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 594918BS2 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Acumen Pharmaceuticals and MICROSOFT P 345, you can compare the effects of market volatilities on Acumen Pharmaceuticals and 594918BS2 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 594918BS2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and 594918BS2.

Diversification Opportunities for Acumen Pharmaceuticals and 594918BS2

0.07

Correlation Coefficient

Acumen Pharmaceuticals  594918BS2

Significant diversification

The 3 months correlation between Acumen and 594918BS2 is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and MICROSOFT P 345 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICROSOFT P 345 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 594918BS2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICROSOFT P 345 has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and 594918BS2 go up and down completely randomly.

Pair Corralation between Acumen Pharmaceuticals and 594918BS2

Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the 594918BS2. In addition to that, Acumen Pharmaceuticals is 1.96 times more volatile than MICROSOFT P 345. It trades about -0.3 of its total potential returns per unit of risk. MICROSOFT P 345 is currently generating about 0.19 per unit of volatility. If you would invest  8,775  in MICROSOFT P 345 on December 1, 2024 and sell it today you would earn a total of  566.00  from holding MICROSOFT P 345 or generate 6.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Acumen Pharmaceuticals  vs.  MICROSOFT P 345

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.

MICROSOFT P 345

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MICROSOFT P 345 are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 594918BS2 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Acumen Pharmaceuticals and 594918BS2

The main advantage of trading using opposite Acumen Pharmaceuticals and 594918BS2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, 594918BS2 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 594918BS2 will offset losses from the drop in 594918BS2's long position.

The idea behind Acumen Pharmaceuticals and MICROSOFT P 345 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.