Correlation Between Clover Health and Acurx Pharmaceuticals

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

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

Diversification Opportunities for Clover Health and Acurx Pharmaceuticals

-0.34

Correlation Coefficient

Clover Health  Acurx Pharmaceuticals

Very good diversification

The 3 months correlation between Clover and Acurx is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Clover Health Investments 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 Clover Health 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 Clover Health Investments 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 Clover Health i.e., Clover Health and Acurx Pharmaceuticals go up and down completely randomly.

Pair Corralation between Clover Health and Acurx Pharmaceuticals

Given the investment horizon of 90 days Clover Health Investments is expected to under-perform the Acurx Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Clover Health Investments is 5.67 times less risky than Acurx Pharmaceuticals. The stock trades about -0.04 of its potential returns per unit of risk. The Acurx Pharmaceuticals LLC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  39.00  in Acurx Pharmaceuticals LLC on May 3, 2025 and sell it today you would lose (6.00) from holding Acurx Pharmaceuticals LLC or give up 15.38% of portfolio value over 90 days.

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

Clover Health Investments  vs.  Acurx Pharmaceuticals LLC

Clover Health Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clover Health Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Acurx Pharmaceuticals LLC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Acurx Pharmaceuticals LLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Acurx Pharmaceuticals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Clover Health and Acurx Pharmaceuticals

The main advantage of trading using opposite Clover Health and Acurx Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clover Health 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 Clover Health Investments 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.