Correlation Between ScanTech and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both ScanTech and Acumen 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 ScanTech and Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ScanTech AI Systems and Acumen Pharmaceuticals, you can compare the effects of market volatilities on ScanTech and Acumen 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 ScanTech with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanTech and Acumen Pharmaceuticals.
Diversification Opportunities for ScanTech and Acumen Pharmaceuticals
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ScanTech and Acumen is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding ScanTech AI Systems and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and ScanTech 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 ScanTech AI Systems are associated (or correlated) with Acumen Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acumen Pharmaceuticals has no effect on the direction of ScanTech i.e., ScanTech and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between ScanTech and Acumen Pharmaceuticals
Given the investment horizon of 90 days ScanTech is expected to generate 13.04 times less return on investment than Acumen Pharmaceuticals. In addition to that, ScanTech is 1.0 times more volatile than Acumen Pharmaceuticals. It trades about 0.02 of its total potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about 0.22 per unit of volatility. If you would invest 123.00 in Acumen Pharmaceuticals on April 22, 2025 and sell it today you would earn a total of 27.00 from holding Acumen Pharmaceuticals or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ScanTech AI Systems vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| ScanTech AI Systems |
| Acumen Pharmaceuticals |
ScanTech and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ScanTech and Acumen Pharmaceuticals
The main advantage of trading using opposite ScanTech and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanTech position performs unexpectedly, Acumen 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 Acumen Pharmaceuticals will offset losses from the drop in Acumen Pharmaceuticals' long position.| ScanTech vs. Acumen Pharmaceuticals | ScanTech vs. Inhibrx Biosciences, | ScanTech vs. Net Lease Office | ScanTech vs. Regeneron Pharmaceuticals |
| Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Hookipa Pharma |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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