Correlation Between SBA Communications and Acceleron Pharma
Can any of the company-specific risk be diversified away by investing in both SBA Communications and Acceleron Pharma 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 SBA Communications and Acceleron Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBA Communications Corp and Acceleron Pharma, you can compare the effects of market volatilities on SBA Communications and Acceleron Pharma 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 SBA Communications with a short position of Acceleron Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBA Communications and Acceleron Pharma.
Diversification Opportunities for SBA Communications and Acceleron Pharma
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SBA and Acceleron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SBA Communications Corp and Acceleron Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acceleron Pharma and SBA Communications 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 SBA Communications Corp are associated (or correlated) with Acceleron Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acceleron Pharma has no effect on the direction of SBA Communications i.e., SBA Communications and Acceleron Pharma go up and down completely randomly.
Pair Corralation between SBA Communications and Acceleron Pharma
If you would invest 0.00 in Acceleron Pharma on January 27, 2024 and sell it today you would earn a total of 0.00 from holding Acceleron Pharma or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
SBA Communications Corp vs. Acceleron Pharma
Performance |
| Timeline |
| SBA Communications Corp |
| Acceleron Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SBA Communications and Acceleron Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBA Communications and Acceleron Pharma
The main advantage of trading using opposite SBA Communications and Acceleron Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBA Communications position performs unexpectedly, Acceleron Pharma 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 Acceleron Pharma will offset losses from the drop in Acceleron Pharma's long position.| SBA Communications vs. Hannon Armstrong Sustainable | SBA Communications vs. Digital Realty Trust | SBA Communications vs. Gaming Leisure Properties |
| Acceleron Pharma vs. Merit Medical Systems | Acceleron Pharma vs. Jacobs Solutions | Acceleron Pharma vs. ChampionX | Acceleron Pharma vs. Molecular Partners AG |
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 CEOs Directory module to screen CEOs from public companies around the world.
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