Correlation Between Acumen Pharmaceuticals and Comcast Corp

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

By analyzing existing cross correlation between Acumen Pharmaceuticals and Comcast Corp, you can compare the effects of market volatilities on Acumen Pharmaceuticals and Comcast Corp 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 Comcast Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Comcast Corp.

Diversification Opportunities for Acumen Pharmaceuticals and Comcast Corp

0.35

Correlation Coefficient

Acumen Pharmaceuticals  Comcast Corp

Weak diversification

The 3 months correlation between Acumen and Comcast is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Comcast Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast Corp 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 Comcast Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comcast Corp has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Comcast Corp go up and down completely randomly.

Pair Corralation between Acumen Pharmaceuticals and Comcast Corp

Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to generate 2.68 times less return on investment than Comcast Corp. In addition to that, Acumen Pharmaceuticals is 3.21 times more volatile than Comcast Corp. It trades about 0.02 of its total potential returns per unit of risk. Comcast Corp is currently generating about 0.14 per unit of volatility. If you would invest  3,838  in Comcast Corp on September 4, 2024 and sell it today you would earn a total of  491.00  from holding Comcast Corp or generate 12.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Acumen Pharmaceuticals  vs.  Comcast Corp

Acumen Pharmaceuticals

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Acumen Pharmaceuticals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Acumen Pharmaceuticals is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Comcast Corp

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Comcast Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Comcast Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Acumen Pharmaceuticals and Comcast Corp

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

The idea behind Acumen Pharmaceuticals and Comcast Corp 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.