Correlation Between Acura Pharmaceuticals and AERWINS Technologies

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

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

Diversification Opportunities for Acura Pharmaceuticals and AERWINS Technologies

0.0

Correlation Coefficient

Acura Pharmaceuticals  AERWINS Technologies

Pay attention - limited upside

The 3 months correlation between Acura and AERWINS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acura Pharmaceuticals and AERWINS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERWINS Technologies and Acura 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 Acura Pharmaceuticals are associated (or correlated) with AERWINS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AERWINS Technologies has no effect on the direction of Acura Pharmaceuticals i.e., Acura Pharmaceuticals and AERWINS Technologies go up and down completely randomly.

Pair Corralation between Acura Pharmaceuticals and AERWINS Technologies

If you would invest (100.00) in AERWINS Technologies on May 7, 2025 and sell it today you would earn a total of  100.00  from holding AERWINS Technologies or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Acura Pharmaceuticals  vs.  AERWINS Technologies

Acura Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acura Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Acura Pharmaceuticals is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

AERWINS Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days AERWINS Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, AERWINS Technologies is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Acura Pharmaceuticals and AERWINS Technologies

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

The idea behind Acura Pharmaceuticals and AERWINS Technologies 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.