Correlation Between HCW Biologics and Acurx Pharmaceuticals

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

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

Diversification Opportunities for HCW Biologics and Acurx Pharmaceuticals

0.88

Correlation Coefficient

HCW Biologics  Acurx Pharmaceuticals

Very poor diversification

The 3 months correlation between HCW and Acurx is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding HCW Biologics 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 HCW Biologics 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 HCW Biologics 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 HCW Biologics i.e., HCW Biologics and Acurx Pharmaceuticals go up and down completely randomly.

Pair Corralation between HCW Biologics and Acurx Pharmaceuticals

Given the investment horizon of 90 days HCW Biologics is expected to generate 1.71 times more return on investment than Acurx Pharmaceuticals. However, HCW Biologics is 1.71 times more volatile than Acurx Pharmaceuticals LLC. It trades about 0.0 of its potential returns per unit of risk. Acurx Pharmaceuticals LLC is currently generating about -0.03 per unit of risk. If you would invest  4,640  in HCW Biologics on October 7, 2025 and sell it today you would lose (4,529) from holding HCW Biologics or give up 97.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	99.8%
Values	Daily Returns

HCW Biologics  vs.  Acurx Pharmaceuticals LLC

HCW Biologics

Risk-Adjusted Performance

Weakest

Over the last 90 days HCW Biologics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Acurx Pharmaceuticals LLC

Risk-Adjusted Performance

Weakest

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

Pair Trading with HCW Biologics and Acurx Pharmaceuticals

The main advantage of trading using opposite HCW Biologics and Acurx Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCW Biologics 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 HCW Biologics 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.

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 the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.