Correlation Between SAB Biotherapeutics and Acurx Pharmaceuticals

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

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

Diversification Opportunities for SAB Biotherapeutics and Acurx Pharmaceuticals

-0.25

Correlation Coefficient

SAB Biotherapeutics  Acurx Pharmaceuticals

Very good diversification

The 3 months correlation between SAB and Acurx is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding SAB Biotherapeutics and Acurx Pharmaceuticals LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acurx Pharmaceuticals LLC and SAB Biotherapeutics 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 SAB Biotherapeutics are associated (or correlated) with Acurx Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acurx Pharmaceuticals LLC has no effect on the direction of SAB Biotherapeutics i.e., SAB Biotherapeutics and Acurx Pharmaceuticals go up and down completely randomly.

Pair Corralation between SAB Biotherapeutics and Acurx Pharmaceuticals

Given the investment horizon of 90 days SAB Biotherapeutics is expected to generate 1.9 times more return on investment than Acurx Pharmaceuticals. However, SAB Biotherapeutics is 1.9 times more volatile than Acurx Pharmaceuticals LLC. It trades about 0.04 of its potential returns per unit of risk. Acurx Pharmaceuticals LLC is currently generating about -0.22 per unit of risk. If you would invest  282.00  in SAB Biotherapeutics on September 4, 2024 and sell it today you would lose (1.00) from holding SAB Biotherapeutics or give up 0.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

SAB Biotherapeutics  vs.  Acurx Pharmaceuticals LLC

SAB Biotherapeutics

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SAB Biotherapeutics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental drivers, SAB Biotherapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Acurx Pharmaceuticals LLC

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with SAB Biotherapeutics and Acurx Pharmaceuticals

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

The idea behind SAB Biotherapeutics and Acurx Pharmaceuticals LLC 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.