Correlation Between Acura Pharma and Centene Corp

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Can any of the company-specific risk be diversified away by investing in both Acura Pharma and Centene Corp 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 Pharma and Centene Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acura Pharma Cmn and Centene Corp, you can compare the effects of market volatilities on Acura Pharma and Centene Corp 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 Pharma with a short position of Centene Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acura Pharma and Centene Corp.

Diversification Opportunities for Acura Pharma and Centene Corp

0.07
  Correlation Coefficient

Significant diversification

The 3 months correlation between Acura and Centene is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Acura Pharma Cmn and Centene Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centene Corp and Acura Pharma 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 Pharma Cmn are associated (or correlated) with Centene Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centene Corp has no effect on the direction of Acura Pharma i.e., Acura Pharma and Centene Corp go up and down completely randomly.

Pair Corralation between Acura Pharma and Centene Corp

If you would invest  1.00  in Acura Pharma Cmn on July 8, 2022 and sell it today you would earn a total of  0.00  from holding Acura Pharma Cmn or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Acura Pharma Cmn  vs.  Centene Corp

 Performance (%) 
       Timeline  
Acura Pharma Cmn 
Acura Performance
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Over the last 90 days Acura Pharma Cmn has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in November 2022. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Acura Price Channel

Centene Corp 
Centene Performance
0 of 100
Over the last 90 days Centene Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Centene Price Channel

Acura Pharma and Centene Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Acura Pharma and Centene Corp

The main advantage of trading using opposite Acura Pharma and Centene Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acura Pharma position performs unexpectedly, Centene Corp 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 Centene Corp will offset losses from the drop in Centene Corp's long position.
Acura Pharma vs. Amazon Inc
The idea behind Acura Pharma Cmn and Centene 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.
Centene Corp vs. Amazon Inc
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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