Correlation Between Edgewise Therapeutics and Precigen
Can any of the company-specific risk be diversified away by investing in both Edgewise Therapeutics and Precigen 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 Precigen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edgewise Therapeutics and Precigen, you can compare the effects of market volatilities on Edgewise Therapeutics and Precigen 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 Precigen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgewise Therapeutics and Precigen.
Diversification Opportunities for Edgewise Therapeutics and Precigen
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Edgewise and Precigen is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Edgewise Therapeutics and Precigen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precigen 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 Precigen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precigen has no effect on the direction of Edgewise Therapeutics i.e., Edgewise Therapeutics and Precigen go up and down completely randomly.
Pair Corralation between Edgewise Therapeutics and Precigen
Given the investment horizon of 90 days Edgewise Therapeutics is expected to under-perform the Precigen. But the stock apears to be less risky and, when comparing its historical volatility, Edgewise Therapeutics is 1.9 times less risky than Precigen. The stock trades about -0.05 of its potential returns per unit of risk. The Precigen is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 82.00 in Precigen on September 2, 2024 and sell it today you would earn a total of 11.00 from holding Precigen or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edgewise Therapeutics vs. Precigen
Performance |
| Timeline |
| Edgewise Therapeutics |
| Precigen |
Edgewise Therapeutics and Precigen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edgewise Therapeutics and Precigen
The main advantage of trading using opposite Edgewise Therapeutics and Precigen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edgewise Therapeutics position performs unexpectedly, Precigen 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 Precigen will offset losses from the drop in Precigen's long position.| Edgewise Therapeutics vs. Tff Pharmaceuticals | Edgewise Therapeutics vs. Eliem Therapeutics | Edgewise Therapeutics vs. Inhibrx | Edgewise Therapeutics vs. Enliven Therapeutics |
| Precigen vs. CorMedix | Precigen vs. Sangamo Therapeutics | Precigen vs. Aptose Biosciences | Precigen vs. Corvus Pharmaceuticals |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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