Correlation Between Edgewise Therapeutics and Agenus
Can any of the company-specific risk be diversified away by investing in both Edgewise Therapeutics 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 Edgewise Therapeutics and Agenus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edgewise Therapeutics and Agenus Inc, you can compare the effects of market volatilities on Edgewise Therapeutics 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 Edgewise Therapeutics with a short position of Agenus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgewise Therapeutics and Agenus.
Diversification Opportunities for Edgewise Therapeutics and Agenus
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Edgewise and Agenus is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Edgewise Therapeutics and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Edgewise Therapeutics 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 Edgewise Therapeutics 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 Edgewise Therapeutics i.e., Edgewise Therapeutics and Agenus go up and down completely randomly.
Pair Corralation between Edgewise Therapeutics and Agenus
Given the investment horizon of 90 days Edgewise Therapeutics is expected to generate 0.37 times more return on investment than Agenus. However, Edgewise Therapeutics is 2.71 times less risky than Agenus. It trades about -0.09 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.16 per unit of risk. If you would invest 3,404 in Edgewise Therapeutics on August 27, 2024 and sell it today you would lose (184.00) from holding Edgewise Therapeutics or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edgewise Therapeutics vs. Agenus Inc
Performance |
| Timeline |
| Edgewise Therapeutics |
| Agenus Inc |
Edgewise Therapeutics and Agenus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edgewise Therapeutics and Agenus
The main advantage of trading using opposite Edgewise Therapeutics and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edgewise Therapeutics 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.| Edgewise Therapeutics vs. Century Therapeutics | Edgewise Therapeutics vs. C4 Therapeutics | Edgewise Therapeutics vs. Mineralys Therapeutics, Common | Edgewise Therapeutics vs. Cullinan Oncology LLC |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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