Correlation Between Acurx Pharmaceuticals and Accustem Sciences

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

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

Diversification Opportunities for Acurx Pharmaceuticals and Accustem Sciences

-0.12

Correlation Coefficient

Acurx Pharmaceuticals  Accustem Sciences

Good diversification

The 3 months correlation between Acurx and Accustem is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Acurx Pharmaceuticals LLC and Accustem Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accustem Sciences and Acurx 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 Acurx Pharmaceuticals LLC are associated (or correlated) with Accustem Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accustem Sciences has no effect on the direction of Acurx Pharmaceuticals i.e., Acurx Pharmaceuticals and Accustem Sciences go up and down completely randomly.

Pair Corralation between Acurx Pharmaceuticals and Accustem Sciences

Given the investment horizon of 90 days Acurx Pharmaceuticals LLC is expected to under-perform the Accustem Sciences. But the stock apears to be less risky and, when comparing its historical volatility, Acurx Pharmaceuticals LLC is 1.82 times less risky than Accustem Sciences. The stock trades about -0.11 of its potential returns per unit of risk. The Accustem Sciences is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  24.00  in Accustem Sciences on December 29, 2024 and sell it today you would earn a total of  17.00  from holding Accustem Sciences or generate 70.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Acurx Pharmaceuticals LLC  vs.  Accustem Sciences

Acurx Pharmaceuticals LLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acurx Pharmaceuticals LLC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Accustem Sciences

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Accustem Sciences are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Accustem Sciences unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Acurx Pharmaceuticals and Accustem Sciences

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

The idea behind Acurx Pharmaceuticals LLC and Accustem Sciences 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.