Correlation Between Acumen Pharmaceuticals and Celcuity LLC
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Celcuity LLC 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 Celcuity LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Celcuity LLC, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Celcuity LLC 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 Celcuity LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Celcuity LLC.
Diversification Opportunities for Acumen Pharmaceuticals and Celcuity LLC
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Acumen and Celcuity is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Celcuity LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celcuity LLC 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 Celcuity LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celcuity LLC has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Celcuity LLC go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Celcuity LLC
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Celcuity LLC. In addition to that, Acumen Pharmaceuticals is 1.62 times more volatile than Celcuity LLC. It trades about -0.26 of its total potential returns per unit of risk. Celcuity LLC is currently generating about -0.29 per unit of volatility. If you would invest 1,683 in Celcuity LLC on March 11, 2024 and sell it today you would lose (254.00) from holding Celcuity LLC or give up 15.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Acumen Pharmaceuticals vs. Celcuity LLC
Performance |
Timeline |
Acumen Pharmaceuticals |
Celcuity LLC |
Acumen Pharmaceuticals and Celcuity LLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acumen Pharmaceuticals and Celcuity LLC
The main advantage of trading using opposite Acumen Pharmaceuticals and Celcuity LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Celcuity LLC 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 Celcuity LLC will offset losses from the drop in Celcuity LLC's long position.Acumen Pharmaceuticals vs. Crispr Therapeutics AG | Acumen Pharmaceuticals vs. Ocean Biomedical | Acumen Pharmaceuticals vs. Enveric Biosciences | Acumen Pharmaceuticals vs. Hepion Pharmaceuticals |
Celcuity LLC vs. Crinetics Pharmaceuticals | Celcuity LLC vs. Viridian Therapeutics | Celcuity LLC vs. Cytokinetics | Celcuity LLC vs. Structure Therapeutics American |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |