Correlation Between Acumen Pharmaceuticals and Amylyx Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals and Amylyx 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 Acumen Pharmaceuticals and Amylyx Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Amylyx Pharmaceuticals, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Amylyx 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 Acumen Pharmaceuticals with a short position of Amylyx Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Amylyx Pharmaceuticals.
Diversification Opportunities for Acumen Pharmaceuticals and Amylyx Pharmaceuticals
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Acumen and Amylyx is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Amylyx Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amylyx Pharmaceuticals 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 Amylyx Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amylyx Pharmaceuticals has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Amylyx Pharmaceuticals go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Amylyx Pharmaceuticals
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to generate 1.56 times less return on investment than Amylyx Pharmaceuticals. But when comparing it to its historical volatility, Acumen Pharmaceuticals is 1.0 times less risky than Amylyx Pharmaceuticals. It trades about 0.14 of its potential returns per unit of risk. Amylyx Pharmaceuticals is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 515.00 in Amylyx Pharmaceuticals on May 30, 2025 and sell it today you would earn a total of 430.00 from holding Amylyx Pharmaceuticals or generate 83.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. Amylyx Pharmaceuticals
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Amylyx Pharmaceuticals |
Acumen Pharmaceuticals and Amylyx Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Amylyx Pharmaceuticals
The main advantage of trading using opposite Acumen Pharmaceuticals and Amylyx Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals position performs unexpectedly, Amylyx 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 Amylyx Pharmaceuticals will offset losses from the drop in Amylyx Pharmaceuticals' long position.| Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Amylyx Pharmaceuticals |
| Amylyx Pharmaceuticals vs. Terns Pharmaceuticals | Amylyx Pharmaceuticals vs. Acumen Pharmaceuticals | Amylyx Pharmaceuticals vs. X4 Pharmaceuticals | Amylyx Pharmaceuticals vs. Day One Biopharmaceuticals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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