Correlation Between Agenus and Vaxcyte
Can any of the company-specific risk be diversified away by investing in both Agenus and Vaxcyte 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 Vaxcyte into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agenus Inc and Vaxcyte, you can compare the effects of market volatilities on Agenus and Vaxcyte 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 Vaxcyte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agenus and Vaxcyte.
Diversification Opportunities for Agenus and Vaxcyte
Poor diversification
The 3 months correlation between Agenus and Vaxcyte is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Agenus Inc and Vaxcyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxcyte 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 Vaxcyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxcyte has no effect on the direction of Agenus i.e., Agenus and Vaxcyte go up and down completely randomly.
Pair Corralation between Agenus and Vaxcyte
Given the investment horizon of 90 days Agenus Inc is expected to under-perform the Vaxcyte. In addition to that, Agenus is 2.29 times more volatile than Vaxcyte. It trades about -0.01 of its total potential returns per unit of risk. Vaxcyte is currently generating about 0.06 per unit of volatility. If you would invest 6,175 in Vaxcyte on November 9, 2024 and sell it today you would earn a total of 2,727 from holding Vaxcyte or generate 44.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agenus Inc vs. Vaxcyte
Performance |
| Timeline |
| Agenus Inc |
| Vaxcyte |
Agenus and Vaxcyte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agenus and Vaxcyte
The main advantage of trading using opposite Agenus and Vaxcyte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agenus position performs unexpectedly, Vaxcyte 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 Vaxcyte will offset losses from the drop in Vaxcyte's long position.| Agenus vs. Marker Therapeutics | Agenus vs. Edgewise Therapeutics | Agenus vs. Adaptimmune Therapeutics Plc | Agenus vs. Mereo BioPharma Group |
| Vaxcyte vs. Larimar Therapeutics | Vaxcyte vs. Syndax Pharmaceuticals | Vaxcyte vs. Merus BV | Vaxcyte vs. Sutro Biopharma |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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