Correlation Between Lifecore Biomedical and AcelRx Pharmaceuticals

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

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

Diversification Opportunities for Lifecore Biomedical and AcelRx Pharmaceuticals

0.0

Correlation Coefficient

Lifecore Biomedical  AcelRx Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between Lifecore and AcelRx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lifecore Biomedical and AcelRx Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcelRx Pharmaceuticals and Lifecore Biomedical 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 Lifecore Biomedical are associated (or correlated) with AcelRx Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcelRx Pharmaceuticals has no effect on the direction of Lifecore Biomedical i.e., Lifecore Biomedical and AcelRx Pharmaceuticals go up and down completely randomly.

Pair Corralation between Lifecore Biomedical and AcelRx Pharmaceuticals

If you would invest  838.00  in Lifecore Biomedical on November 20, 2024 and sell it today you would lose (233.00) from holding Lifecore Biomedical or give up 27.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Lifecore Biomedical  vs.  AcelRx Pharmaceuticals

Lifecore Biomedical

Risk-Adjusted Performance

Very Weak

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

AcelRx Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days AcelRx Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, AcelRx Pharmaceuticals is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lifecore Biomedical and AcelRx Pharmaceuticals

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

The idea behind Lifecore Biomedical and AcelRx Pharmaceuticals 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.