Correlation Between GH Research and PepGen
Can any of the company-specific risk be diversified away by investing in both GH Research and PepGen 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 GH Research and PepGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GH Research PLC and PepGen, you can compare the effects of market volatilities on GH Research and PepGen 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 GH Research with a short position of PepGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of GH Research and PepGen.
Diversification Opportunities for GH Research and PepGen
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GHRS and PepGen is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding GH Research PLC and PepGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PepGen and GH Research 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 GH Research PLC are associated (or correlated) with PepGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PepGen has no effect on the direction of GH Research i.e., GH Research and PepGen go up and down completely randomly.
Pair Corralation between GH Research and PepGen
Given the investment horizon of 90 days GH Research PLC is expected to generate 0.73 times more return on investment than PepGen. However, GH Research PLC is 1.37 times less risky than PepGen. It trades about 0.12 of its potential returns per unit of risk. PepGen is currently generating about -0.15 per unit of risk. If you would invest 810.00 in GH Research PLC on September 1, 2024 and sell it today you would earn a total of 83.00 from holding GH Research PLC or generate 10.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GH Research PLC vs. PepGen
Performance |
| Timeline |
| GH Research PLC |
| PepGen |
GH Research and PepGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GH Research and PepGen
The main advantage of trading using opposite GH Research and PepGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GH Research position performs unexpectedly, PepGen 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 PepGen will offset losses from the drop in PepGen's long position.| GH Research vs. Molecular Partners AG | GH Research vs. MediciNova | GH Research vs. Anebulo Pharmaceuticals | GH Research vs. Champions Oncology |
| PepGen vs. Pmv Pharmaceuticals | PepGen vs. Eliem Therapeutics | PepGen vs. MediciNova | PepGen vs. Pharvaris BV |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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