Correlation Between Adagene and PepGen
Can any of the company-specific risk be diversified away by investing in both Adagene and PepGen 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 Adagene and PepGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adagene and PepGen, you can compare the effects of market volatilities on Adagene and PepGen 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 Adagene with a short position of PepGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adagene and PepGen.
Diversification Opportunities for Adagene and PepGen
Average diversification
The 3 months correlation between Adagene and PepGen is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Adagene and PepGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PepGen and Adagene 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 Adagene are associated (or correlated) with PepGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PepGen has no effect on the direction of Adagene i.e., Adagene and PepGen go up and down completely randomly.
Pair Corralation between Adagene and PepGen
Given the investment horizon of 90 days Adagene is expected to generate 0.96 times more return on investment than PepGen. However, Adagene is 1.04 times less risky than PepGen. It trades about 0.06 of its potential returns per unit of risk. PepGen is currently generating about 0.03 per unit of risk. If you would invest 146.00 in Adagene on August 24, 2024 and sell it today you would earn a total of 80.00 from holding Adagene or generate 54.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adagene vs. PepGen
Performance |
| Timeline |
| Adagene |
| PepGen |
Adagene and PepGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adagene and PepGen
The main advantage of trading using opposite Adagene and PepGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adagene position performs unexpectedly, PepGen 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 PepGen will offset losses from the drop in PepGen's long position.| Adagene vs. Aerovate Therapeutics | Adagene vs. Acrivon Therapeutics, Common | Adagene vs. Rezolute | Adagene vs. AN2 Therapeutics |
| PepGen vs. Pmv Pharmaceuticals | PepGen vs. Eliem Therapeutics | PepGen vs. MediciNova | PepGen vs. Pharvaris BV |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |