Correlation Between Wealthsimple Shariah and Acumen Pharmaceuticals

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

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

Diversification Opportunities for Wealthsimple Shariah and Acumen Pharmaceuticals

0.57

Correlation Coefficient

Wealthsimple Shariah  Acumen Pharmaceuticals

Very weak diversification

The 3 months correlation between Wealthsimple and Acumen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Wealthsimple Shariah World and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and Wealthsimple Shariah 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 Wealthsimple Shariah World are associated (or correlated) with Acumen Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acumen Pharmaceuticals has no effect on the direction of Wealthsimple Shariah i.e., Wealthsimple Shariah and Acumen Pharmaceuticals go up and down completely randomly.

Pair Corralation between Wealthsimple Shariah and Acumen Pharmaceuticals

Assuming the 90 days trading horizon Wealthsimple Shariah World is not expected to generate positive returns. However, Wealthsimple Shariah World is 9.64 times less risky than Acumen Pharmaceuticals. It waists most of its returns potential to compensate for thr risk taken. Acumen Pharmaceuticals is generating about 0.06 per unit of risk. If you would invest  141.00  in Acumen Pharmaceuticals on August 20, 2025 and sell it today you would earn a total of  17.00  from holding Acumen Pharmaceuticals or generate 12.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Wealthsimple Shariah World  vs.  Acumen Pharmaceuticals

Wealthsimple Shariah

Risk-Adjusted Performance

Weak

Over the last 90 days Wealthsimple Shariah World has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Wealthsimple Shariah is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Acumen Pharmaceuticals

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Acumen Pharmaceuticals are ranked lower than 4 (%) 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.

Pair Trading with Wealthsimple Shariah and Acumen Pharmaceuticals

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

The idea behind Wealthsimple Shariah World and Acumen Pharmaceuticals 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.