Correlation Between Cyclacel Pharmaceuticals and Agenus
Can any of the company-specific risk be diversified away by investing in both Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals and Agenus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cyclacel Pharmaceuticals and Agenus Inc, you can compare the effects of market volatilities on Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals with a short position of Agenus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cyclacel Pharmaceuticals and Agenus.
Diversification Opportunities for Cyclacel Pharmaceuticals and Agenus
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cyclacel and Agenus is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cyclacel Pharmaceuticals and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals i.e., Cyclacel Pharmaceuticals and Agenus go up and down completely randomly.
Pair Corralation between Cyclacel Pharmaceuticals and Agenus
Given the investment horizon of 90 days Cyclacel Pharmaceuticals is expected to under-perform the Agenus. In addition to that, Cyclacel Pharmaceuticals is 1.08 times more volatile than Agenus Inc. It trades about -0.08 of its total potential returns per unit of risk. Agenus Inc is currently generating about -0.03 per unit of volatility. If you would invest 1,554 in Agenus Inc on August 26, 2024 and sell it today you would lose (1,220) from holding Agenus Inc or give up 78.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cyclacel Pharmaceuticals vs. Agenus Inc
Performance |
| Timeline |
| Cyclacel Pharmaceuticals |
| Agenus Inc |
Cyclacel Pharmaceuticals and Agenus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cyclacel Pharmaceuticals and Agenus
The main advantage of trading using opposite Cyclacel Pharmaceuticals and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyclacel Pharmaceuticals 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.| Cyclacel Pharmaceuticals vs. Eliem Therapeutics | Cyclacel Pharmaceuticals vs. Ikena Oncology | Cyclacel Pharmaceuticals vs. Ovid Therapeutics | Cyclacel Pharmaceuticals vs. Connect Biopharma Holdings |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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