Correlation Between AgeX Therapeutics and Icosavax
Can any of the company-specific risk be diversified away by investing in both AgeX Therapeutics and Icosavax 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 Icosavax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AgeX Therapeutics and Icosavax, you can compare the effects of market volatilities on AgeX Therapeutics and Icosavax 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 Icosavax. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgeX Therapeutics and Icosavax.
Diversification Opportunities for AgeX Therapeutics and Icosavax
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AgeX and Icosavax is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding AgeX Therapeutics and Icosavax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icosavax 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 Icosavax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icosavax has no effect on the direction of AgeX Therapeutics i.e., AgeX Therapeutics and Icosavax go up and down completely randomly.
Pair Corralation between AgeX Therapeutics and Icosavax
Considering the 90-day investment horizon AgeX Therapeutics is expected to generate 1.63 times more return on investment than Icosavax. However, AgeX Therapeutics is 1.63 times more volatile than Icosavax. It trades about 0.1 of its potential returns per unit of risk. Icosavax is currently generating about -0.01 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AgeX Therapeutics vs. Icosavax
Performance |
| Timeline |
| AgeX Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Icosavax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AgeX Therapeutics and Icosavax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgeX Therapeutics and Icosavax
The main advantage of trading using opposite AgeX Therapeutics and Icosavax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgeX Therapeutics position performs unexpectedly, Icosavax 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 Icosavax will offset losses from the drop in Icosavax's long position.| AgeX Therapeutics vs. MAIA Biotechnology | AgeX Therapeutics vs. Larimar Therapeutics | AgeX Therapeutics vs. Lyra Therapeutics | AgeX Therapeutics vs. Lineage Cell Therapeutics |
| Icosavax vs. Terns Pharmaceuticals | Icosavax vs. Amylyx Pharmaceuticals | Icosavax vs. Acumen Pharmaceuticals | Icosavax vs. Inozyme Pharma |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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