Correlation Between AgeX Therapeutics and Graphite Bio
Can any of the company-specific risk be diversified away by investing in both AgeX Therapeutics and Graphite Bio 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 AgeX Therapeutics and Graphite Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AgeX Therapeutics and Graphite Bio, you can compare the effects of market volatilities on AgeX Therapeutics and Graphite Bio 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 AgeX Therapeutics with a short position of Graphite Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgeX Therapeutics and Graphite Bio.
Diversification Opportunities for AgeX Therapeutics and Graphite Bio
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AgeX and Graphite is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding AgeX Therapeutics and Graphite Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphite Bio and AgeX 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 AgeX Therapeutics are associated (or correlated) with Graphite Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphite Bio has no effect on the direction of AgeX Therapeutics i.e., AgeX Therapeutics and Graphite Bio go up and down completely randomly.
Pair Corralation between AgeX Therapeutics and Graphite Bio
Considering the 90-day investment horizon AgeX Therapeutics is expected to generate 3.28 times more return on investment than Graphite Bio. However, AgeX Therapeutics is 3.28 times more volatile than Graphite Bio. It trades about 0.1 of its potential returns per unit of risk. Graphite Bio is currently generating about -0.12 per unit of risk. If you would invest 63.00 in AgeX Therapeutics on August 31, 2024 and sell it today you would earn a total of 11.00 from holding AgeX Therapeutics or generate 17.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AgeX Therapeutics vs. Graphite Bio
Performance |
| Timeline |
| AgeX Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Graphite Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AgeX Therapeutics and Graphite Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgeX Therapeutics and Graphite Bio
The main advantage of trading using opposite AgeX Therapeutics and Graphite Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgeX Therapeutics position performs unexpectedly, Graphite Bio 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 Graphite Bio will offset losses from the drop in Graphite Bio's long position.| AgeX Therapeutics vs. MAIA Biotechnology | AgeX Therapeutics vs. Larimar Therapeutics | AgeX Therapeutics vs. Lyra Therapeutics | AgeX Therapeutics vs. Lineage Cell Therapeutics |
| Graphite Bio vs. Assembly Biosciences | Graphite Bio vs. Instil Bio | Graphite Bio vs. Nuvation Bio | Graphite Bio vs. Achilles Therapeutics PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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