Correlation Between BeiGene and PepGen
Can any of the company-specific risk be diversified away by investing in both BeiGene and PepGen 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 BeiGene and PepGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BeiGene and PepGen, you can compare the effects of market volatilities on BeiGene and PepGen 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 BeiGene with a short position of PepGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and PepGen.
Diversification Opportunities for BeiGene and PepGen
Very weak diversification
The 3 months correlation between BeiGene and PepGen is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and PepGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PepGen and BeiGene 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 BeiGene are associated (or correlated) with PepGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PepGen has no effect on the direction of BeiGene i.e., BeiGene and PepGen go up and down completely randomly.
Pair Corralation between BeiGene and PepGen
Given the investment horizon of 90 days BeiGene is expected to generate 0.36 times more return on investment than PepGen. However, BeiGene is 2.79 times less risky than PepGen. It trades about 0.01 of its potential returns per unit of risk. PepGen is currently generating about -0.18 per unit of risk. If you would invest 20,599 in BeiGene on August 31, 2024 and sell it today you would earn a total of 17.00 from holding BeiGene or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. PepGen
Performance |
| Timeline |
| BeiGene |
| PepGen |
BeiGene and PepGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and PepGen
The main advantage of trading using opposite BeiGene and PepGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, PepGen 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 PepGen will offset losses from the drop in PepGen's long position.| BeiGene vs. Ascendis Pharma AS | BeiGene vs. Apellis Pharmaceuticals | BeiGene vs. Akero Therapeutics | BeiGene vs. Blueprint Medicines Corp |
| PepGen vs. Pmv Pharmaceuticals | PepGen vs. Eliem Therapeutics | PepGen vs. MediciNova | PepGen vs. Pharvaris BV |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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