Correlation Between Equillium and EnGene Holdings
Can any of the company-specific risk be diversified away by investing in both Equillium and EnGene Holdings 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 Equillium and EnGene Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equillium and enGene Holdings Common, you can compare the effects of market volatilities on Equillium and EnGene Holdings 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 Equillium with a short position of EnGene Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equillium and EnGene Holdings.
Diversification Opportunities for Equillium and EnGene Holdings
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Equillium and EnGene is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and enGene Holdings Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enGene Holdings Common and Equillium 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 Equillium are associated (or correlated) with EnGene Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enGene Holdings Common has no effect on the direction of Equillium i.e., Equillium and EnGene Holdings go up and down completely randomly.
Pair Corralation between Equillium and EnGene Holdings
Allowing for the 90-day total investment horizon Equillium is expected to under-perform the EnGene Holdings. In addition to that, Equillium is 2.72 times more volatile than enGene Holdings Common. It trades about -0.21 of its total potential returns per unit of risk. enGene Holdings Common is currently generating about -0.03 per unit of volatility. If you would invest 900.00 in enGene Holdings Common on August 30, 2024 and sell it today you would lose (32.00) from holding enGene Holdings Common or give up 3.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equillium vs. enGene Holdings Common
Performance |
| Timeline |
| Equillium |
| enGene Holdings Common |
Equillium and EnGene Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equillium and EnGene Holdings
The main advantage of trading using opposite Equillium and EnGene Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equillium position performs unexpectedly, EnGene Holdings 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 EnGene Holdings will offset losses from the drop in EnGene Holdings' long position.| Equillium vs. Lyra Therapeutics | Equillium vs. Hookipa Pharma | Equillium vs. Jasper Therapeutics | Equillium vs. Cingulate Warrants |
| EnGene Holdings vs. Agilent Technologies | EnGene Holdings vs. Equillium | EnGene Holdings vs. 23Andme Holding Co | EnGene Holdings vs. DiaMedica Therapeutics |
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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