Correlation Between Agenus and Sangamo Therapeutics
Can any of the company-specific risk be diversified away by investing in both Agenus and Sangamo Therapeutics 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 Sangamo Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agenus Inc and Sangamo Therapeutics, you can compare the effects of market volatilities on Agenus and Sangamo Therapeutics 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 Sangamo Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agenus and Sangamo Therapeutics.
Diversification Opportunities for Agenus and Sangamo Therapeutics
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agenus and Sangamo is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Agenus Inc and Sangamo Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangamo Therapeutics 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 Sangamo Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangamo Therapeutics has no effect on the direction of Agenus i.e., Agenus and Sangamo Therapeutics go up and down completely randomly.
Pair Corralation between Agenus and Sangamo Therapeutics
Given the investment horizon of 90 days Agenus Inc is expected to generate 1.16 times more return on investment than Sangamo Therapeutics. However, Agenus is 1.16 times more volatile than Sangamo Therapeutics. It trades about -0.1 of its potential returns per unit of risk. Sangamo Therapeutics is currently generating about -0.14 per unit of risk. If you would invest 356.00 in Agenus Inc on November 29, 2024 and sell it today you would lose (43.00) from holding Agenus Inc or give up 12.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agenus Inc vs. Sangamo Therapeutics
Performance |
| Timeline |
| Agenus Inc |
| Sangamo Therapeutics |
Agenus and Sangamo Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agenus and Sangamo Therapeutics
The main advantage of trading using opposite Agenus and Sangamo Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agenus position performs unexpectedly, Sangamo Therapeutics 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 Sangamo Therapeutics will offset losses from the drop in Sangamo Therapeutics' long position.| Agenus vs. Marker Therapeutics | Agenus vs. Edgewise Therapeutics | Agenus vs. Adaptimmune Therapeutics Plc | Agenus vs. Mereo BioPharma Group |
| Sangamo Therapeutics vs. Editas Medicine | Sangamo Therapeutics vs. Intellia Therapeutics | Sangamo Therapeutics vs. Bluebird bio | Sangamo Therapeutics vs. Alnylam 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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