Correlation Between Acumen Pharmaceuticals and Definitive Healthcare

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

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

Diversification Opportunities for Acumen Pharmaceuticals and Definitive Healthcare

0.62

Correlation Coefficient

Acumen Pharmaceuticals  Definitive Healthcare

Poor diversification

The 3 months correlation between Acumen and Definitive is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Definitive Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Definitive Healthcare 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 Definitive Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Definitive Healthcare has no effect on the direction of Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Definitive Healthcare go up and down completely randomly.

Pair Corralation between Acumen Pharmaceuticals and Definitive Healthcare

Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to generate 1.59 times more return on investment than Definitive Healthcare. However, Acumen Pharmaceuticals is 1.59 times more volatile than Definitive Healthcare Corp. It trades about 0.1 of its potential returns per unit of risk. Definitive Healthcare Corp is currently generating about 0.05 per unit of risk. If you would invest  107.00  in Acumen Pharmaceuticals on June 4, 2025 and sell it today you would earn a total of  29.00  from holding Acumen Pharmaceuticals or generate 27.1% 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.  Definitive Healthcare Corp

Acumen Pharmaceuticals

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Acumen Pharmaceuticals are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Acumen Pharmaceuticals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Definitive Healthcare

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Definitive Healthcare Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady technical indicators, Definitive Healthcare may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Acumen Pharmaceuticals and Definitive Healthcare

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

The idea behind Acumen Pharmaceuticals and Definitive Healthcare 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 Stocks Directory module to find actively traded stocks across global markets.