Correlation Between Agenus and Bio Techne
Can any of the company-specific risk be diversified away by investing in both Agenus and Bio Techne 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 Bio Techne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agenus Inc and Bio Techne Corp, you can compare the effects of market volatilities on Agenus and Bio Techne 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 Bio Techne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agenus and Bio Techne.
Diversification Opportunities for Agenus and Bio Techne
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agenus and Bio is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Agenus Inc and Bio Techne Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Techne Corp 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 Bio Techne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Techne Corp has no effect on the direction of Agenus i.e., Agenus and Bio Techne go up and down completely randomly.
Pair Corralation between Agenus and Bio Techne
Given the investment horizon of 90 days Agenus Inc is expected to under-perform the Bio Techne. In addition to that, Agenus is 2.82 times more volatile than Bio Techne Corp. It trades about -0.01 of its total potential returns per unit of risk. Bio Techne Corp is currently generating about -0.01 per unit of volatility. If you would invest 7,523 in Bio Techne Corp on November 1, 2024 and sell it today you would lose (247.00) from holding Bio Techne Corp or give up 3.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agenus Inc vs. Bio Techne Corp
Performance |
| Timeline |
| Agenus Inc |
| Bio Techne Corp |
Agenus and Bio Techne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agenus and Bio Techne
The main advantage of trading using opposite Agenus and Bio Techne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agenus position performs unexpectedly, Bio Techne 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 Bio Techne will offset losses from the drop in Bio Techne's long position.| Agenus vs. Marker Therapeutics | Agenus vs. Edgewise Therapeutics | Agenus vs. Adaptimmune Therapeutics Plc | Agenus vs. Mereo BioPharma Group |
| Bio Techne vs. Biomarin Pharmaceutical | Bio Techne vs. Vaxcyte | Bio Techne vs. Liquidia Technologies | Bio Techne vs. Legend Biotech 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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