Correlation Between Agenus and Biomarin Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Agenus and Biomarin Pharmaceutical 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 Agenus and Biomarin Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agenus Inc and Biomarin Pharmaceutical, you can compare the effects of market volatilities on Agenus and Biomarin Pharmaceutical 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 Agenus with a short position of Biomarin Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agenus and Biomarin Pharmaceutical.
Diversification Opportunities for Agenus and Biomarin Pharmaceutical
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agenus and Biomarin is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Agenus Inc and Biomarin Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biomarin Pharmaceutical and Agenus 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 Agenus Inc are associated (or correlated) with Biomarin Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biomarin Pharmaceutical has no effect on the direction of Agenus i.e., Agenus and Biomarin Pharmaceutical go up and down completely randomly.
Pair Corralation between Agenus and Biomarin Pharmaceutical
Given the investment horizon of 90 days Agenus Inc is expected to generate 4.01 times more return on investment than Biomarin Pharmaceutical. However, Agenus is 4.01 times more volatile than Biomarin Pharmaceutical. It trades about -0.01 of its potential returns per unit of risk. Biomarin Pharmaceutical is currently generating about -0.06 per unit of risk. If you would invest 1,226 in Agenus Inc on November 9, 2024 and sell it today you would lose (852.00) from holding Agenus Inc or give up 69.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agenus Inc vs. Biomarin Pharmaceutical
Performance |
| Timeline |
| Agenus Inc |
| Biomarin Pharmaceutical |
Agenus and Biomarin Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agenus and Biomarin Pharmaceutical
The main advantage of trading using opposite Agenus and Biomarin Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agenus position performs unexpectedly, Biomarin Pharmaceutical 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 Biomarin Pharmaceutical will offset losses from the drop in Biomarin Pharmaceutical's long position.| Agenus vs. Marker Therapeutics | Agenus vs. Edgewise Therapeutics | Agenus vs. Adaptimmune Therapeutics Plc | Agenus vs. Mereo BioPharma Group |
| Biomarin Pharmaceutical vs. Alnylam Pharmaceuticals | Biomarin Pharmaceutical vs. Exelixis | Biomarin Pharmaceutical vs. Halozyme Therapeutics | Biomarin Pharmaceutical vs. Arrowhead Pharmaceuticals |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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