Correlation Between Geron and Awakn Life
Can any of the company-specific risk be diversified away by investing in both Geron and Awakn Life 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 Geron and Awakn Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geron and Awakn Life Sciences, you can compare the effects of market volatilities on Geron and Awakn Life 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 Geron with a short position of Awakn Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and Awakn Life.
Diversification Opportunities for Geron and Awakn Life
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Geron and Awakn is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Geron and Awakn Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awakn Life Sciences and Geron 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 Geron are associated (or correlated) with Awakn Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awakn Life Sciences has no effect on the direction of Geron i.e., Geron and Awakn Life go up and down completely randomly.
Pair Corralation between Geron and Awakn Life
Given the investment horizon of 90 days Geron is expected to generate 7.04 times less return on investment than Awakn Life. But when comparing it to its historical volatility, Geron is 4.24 times less risky than Awakn Life. It trades about 0.04 of its potential returns per unit of risk. Awakn Life Sciences is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Awakn Life Sciences on August 30, 2024 and sell it today you would lose (1.76) from holding Awakn Life Sciences or give up 16.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geron vs. Awakn Life Sciences
Performance |
| Timeline |
| Geron |
| Awakn Life Sciences |
Geron and Awakn Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron and Awakn Life
The main advantage of trading using opposite Geron and Awakn Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron position performs unexpectedly, Awakn Life 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 Awakn Life will offset losses from the drop in Awakn Life's long position.| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
| Awakn Life vs. Advanced Proteome Therapeutics | Awakn Life vs. ChitogenX | Awakn Life vs. Northwest Biotherapeutics | Awakn Life vs. Geron |
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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