Correlation Between C4 Therapeutics and Acurx Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both C4 Therapeutics 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 C4 Therapeutics and Acurx Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C4 Therapeutics and Acurx Pharmaceuticals LLC, you can compare the effects of market volatilities on C4 Therapeutics 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 C4 Therapeutics with a short position of Acurx Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of C4 Therapeutics and Acurx Pharmaceuticals.

Diversification Opportunities for C4 Therapeutics and Acurx Pharmaceuticals

0.3

Correlation Coefficient

C4 Therapeutics  Acurx Pharmaceuticals

Weak diversification

The 3 months correlation between CCCC and Acurx is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding C4 Therapeutics 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 C4 Therapeutics 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 C4 Therapeutics 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 C4 Therapeutics i.e., C4 Therapeutics and Acurx Pharmaceuticals go up and down completely randomly.

Pair Corralation between C4 Therapeutics and Acurx Pharmaceuticals

Given the investment horizon of 90 days C4 Therapeutics is expected to under-perform the Acurx Pharmaceuticals. In addition to that, C4 Therapeutics is 3.26 times more volatile than Acurx Pharmaceuticals LLC. It trades about -0.33 of its total potential returns per unit of risk. Acurx Pharmaceuticals LLC is currently generating about -0.46 per unit of volatility. If you would invest  202.00  in Acurx Pharmaceuticals LLC on August 18, 2024 and sell it today you would lose (30.00) from holding Acurx Pharmaceuticals LLC or give up 14.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

C4 Therapeutics  vs.  Acurx Pharmaceuticals LLC

C4 Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days C4 Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Acurx Pharmaceuticals LLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acurx Pharmaceuticals LLC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with C4 Therapeutics and Acurx Pharmaceuticals

The main advantage of trading using opposite C4 Therapeutics and Acurx Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C4 Therapeutics 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 C4 Therapeutics 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.