Correlation Between Agenus and Lumos Pharma
Can any of the company-specific risk be diversified away by investing in both Agenus and Lumos Pharma 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 Lumos Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agenus Inc and Lumos Pharma, you can compare the effects of market volatilities on Agenus and Lumos Pharma 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 Lumos Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agenus and Lumos Pharma.
Diversification Opportunities for Agenus and Lumos Pharma
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agenus and Lumos is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Agenus Inc and Lumos Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumos Pharma 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 Lumos Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumos Pharma has no effect on the direction of Agenus i.e., Agenus and Lumos Pharma go up and down completely randomly.
Pair Corralation between Agenus and Lumos Pharma
Given the investment horizon of 90 days Agenus Inc is expected to under-perform the Lumos Pharma. In addition to that, Agenus is 1.39 times more volatile than Lumos Pharma. It trades about -0.05 of its total potential returns per unit of risk. Lumos Pharma is currently generating about 0.02 per unit of volatility. If you would invest 517.00 in Lumos Pharma on August 26, 2024 and sell it today you would lose (86.00) from holding Lumos Pharma or give up 16.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agenus Inc vs. Lumos Pharma
Performance |
| Timeline |
| Agenus Inc |
| Lumos Pharma |
Agenus and Lumos Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agenus and Lumos Pharma
The main advantage of trading using opposite Agenus and Lumos Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agenus position performs unexpectedly, Lumos Pharma 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 Lumos Pharma will offset losses from the drop in Lumos Pharma's long position.| Agenus vs. Marker Therapeutics | Agenus vs. Edgewise Therapeutics | Agenus vs. Adaptimmune Therapeutics Plc | Agenus vs. Mereo BioPharma Group |
| Lumos Pharma vs. Shattuck Labs | Lumos Pharma vs. Eliem Therapeutics | Lumos Pharma vs. Champions Oncology | Lumos Pharma vs. Century Therapeutics |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |