Correlation Between Agenus and Geron
Can any of the company-specific risk be diversified away by investing in both Agenus and Geron 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 Geron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agenus Inc and Geron, you can compare the effects of market volatilities on Agenus and Geron 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 Geron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agenus and Geron.
Diversification Opportunities for Agenus and Geron
Very poor diversification
The 3 months correlation between Agenus and Geron is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Agenus Inc and Geron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron 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 Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of Agenus i.e., Agenus and Geron go up and down completely randomly.
Pair Corralation between Agenus and Geron
Given the investment horizon of 90 days Agenus Inc is expected to under-perform the Geron. In addition to that, Agenus is 1.12 times more volatile than Geron. It trades about -0.03 of its total potential returns per unit of risk. Geron is currently generating about 0.07 per unit of volatility. If you would invest 209.00 in Geron on September 2, 2024 and sell it today you would earn a total of 203.00 from holding Geron or generate 97.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agenus Inc vs. Geron
Performance |
| Timeline |
| Agenus Inc |
| Geron |
Agenus and Geron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agenus and Geron
The main advantage of trading using opposite Agenus and Geron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agenus position performs unexpectedly, Geron 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 Geron will offset losses from the drop in Geron's long position.| Agenus vs. Tff Pharmaceuticals | Agenus vs. Eliem Therapeutics | Agenus vs. Inhibrx | Agenus vs. Enliven Therapeutics |
| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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