Correlation Between Acumen Pharmaceuticals and Codexis

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

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

Diversification Opportunities for Acumen Pharmaceuticals and Codexis

0.6

Correlation Coefficient

Acumen Pharmaceuticals  Codexis

Poor diversification

The 3 months correlation between Acumen and Codexis is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis 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 Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Codexis go up and down completely randomly.

Pair Corralation between Acumen Pharmaceuticals and Codexis

Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to generate 1.1 times more return on investment than Codexis. However, Acumen Pharmaceuticals is 1.1 times more volatile than Codexis. It trades about 0.08 of its potential returns per unit of risk. Codexis is currently generating about 0.05 per unit of risk. If you would invest  114.00  in Acumen Pharmaceuticals on June 12, 2025 and sell it today you would earn a total of  21.00  from holding Acumen Pharmaceuticals or generate 18.42% return on investment over 90 days.

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

Acumen Pharmaceuticals  vs.  Codexis

Acumen Pharmaceuticals

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Acumen Pharmaceuticals are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Acumen Pharmaceuticals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Codexis

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Codexis are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Codexis unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Acumen Pharmaceuticals and Codexis

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

The idea behind Acumen Pharmaceuticals and Codexis 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.