Correlation Between Agenus and NRX Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Agenus and NRX Pharmaceuticals 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 NRX Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agenus Inc and NRX Pharmaceuticals, you can compare the effects of market volatilities on Agenus and NRX Pharmaceuticals 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 NRX Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agenus and NRX Pharmaceuticals.
Diversification Opportunities for Agenus and NRX Pharmaceuticals
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agenus and NRX is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Agenus Inc and NRX Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRX Pharmaceuticals 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 NRX Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRX Pharmaceuticals has no effect on the direction of Agenus i.e., Agenus and NRX Pharmaceuticals go up and down completely randomly.
Pair Corralation between Agenus and NRX Pharmaceuticals
Given the investment horizon of 90 days Agenus Inc is expected to under-perform the NRX Pharmaceuticals. In addition to that, Agenus is 1.84 times more volatile than NRX Pharmaceuticals. It trades about -0.12 of its total potential returns per unit of risk. NRX Pharmaceuticals is currently generating about -0.06 per unit of volatility. If you would invest 143.00 in NRX Pharmaceuticals on August 31, 2024 and sell it today you would lose (9.50) from holding NRX Pharmaceuticals or give up 6.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Agenus Inc vs. NRX Pharmaceuticals
Performance |
| Timeline |
| Agenus Inc |
| NRX Pharmaceuticals |
Agenus and NRX Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agenus and NRX Pharmaceuticals
The main advantage of trading using opposite Agenus and NRX Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agenus position performs unexpectedly, NRX Pharmaceuticals 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 NRX Pharmaceuticals will offset losses from the drop in NRX Pharmaceuticals' long position.| Agenus vs. Marker Therapeutics | Agenus vs. Edgewise Therapeutics | Agenus vs. Adaptimmune Therapeutics Plc | Agenus vs. Mereo BioPharma Group |
| NRX Pharmaceuticals vs. Biomx Inc | NRX Pharmaceuticals vs. Lexaria Bioscience Corp | NRX Pharmaceuticals vs. Aditxt Inc | NRX Pharmaceuticals vs. Nutriband |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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