Correlation Between Bionomics and Agenus
Can any of the company-specific risk be diversified away by investing in both Bionomics and Agenus 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 Bionomics and Agenus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bionomics Ltd ADR and Agenus Inc, you can compare the effects of market volatilities on Bionomics and Agenus 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 Bionomics with a short position of Agenus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionomics and Agenus.
Diversification Opportunities for Bionomics and Agenus
Poor diversification
The 3 months correlation between Bionomics and Agenus is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bionomics Ltd ADR and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Bionomics 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 Bionomics Ltd ADR are associated (or correlated) with Agenus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agenus Inc has no effect on the direction of Bionomics i.e., Bionomics and Agenus go up and down completely randomly.
Pair Corralation between Bionomics and Agenus
Given the investment horizon of 90 days Bionomics Ltd ADR is expected to generate 2.31 times more return on investment than Agenus. However, Bionomics is 2.31 times more volatile than Agenus Inc. It trades about 0.0 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.05 per unit of risk. If you would invest 690.00 in Bionomics Ltd ADR on August 26, 2024 and sell it today you would lose (661.00) from holding Bionomics Ltd ADR or give up 95.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bionomics Ltd ADR vs. Agenus Inc
Performance |
| Timeline |
| Bionomics ADR |
| Agenus Inc |
Bionomics and Agenus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bionomics and Agenus
The main advantage of trading using opposite Bionomics and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionomics position performs unexpectedly, Agenus 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 Agenus will offset losses from the drop in Agenus' long position.| Bionomics vs. Accustem Sciences | Bionomics vs. Scisparc | Bionomics vs. Anebulo Pharmaceuticals | Bionomics vs. Pmv Pharmaceuticals |
| Agenus vs. Marker Therapeutics | Agenus vs. Edgewise Therapeutics | Agenus vs. Adaptimmune Therapeutics Plc | Agenus vs. Mereo BioPharma Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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