Correlation Between Gilead Sciences and Agenus
Can any of the company-specific risk be diversified away by investing in both Gilead Sciences 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 Gilead Sciences and Agenus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gilead Sciences and Agenus Inc, you can compare the effects of market volatilities on Gilead Sciences 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 Gilead Sciences with a short position of Agenus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilead Sciences and Agenus.
Diversification Opportunities for Gilead Sciences and Agenus
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gilead and Agenus is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Gilead Sciences and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Gilead Sciences 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 Gilead Sciences 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 Gilead Sciences i.e., Gilead Sciences and Agenus go up and down completely randomly.
Pair Corralation between Gilead Sciences and Agenus
Given the investment horizon of 90 days Gilead Sciences is expected to generate 0.29 times more return on investment than Agenus. However, Gilead Sciences is 3.43 times less risky than Agenus. It trades about 0.09 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.08 per unit of risk. If you would invest 8,951 in Gilead Sciences on September 2, 2024 and sell it today you would earn a total of 307.00 from holding Gilead Sciences or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gilead Sciences vs. Agenus Inc
Performance |
| Timeline |
| Gilead Sciences |
| Agenus Inc |
Gilead Sciences and Agenus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilead Sciences and Agenus
The main advantage of trading using opposite Gilead Sciences and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilead Sciences 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.| Gilead Sciences vs. Amgen Inc | Gilead Sciences vs. Merck Company | Gilead Sciences vs. AbbVie Inc | Gilead Sciences vs. Johnson Johnson |
| Agenus vs. Tff Pharmaceuticals | Agenus vs. Eliem Therapeutics | Agenus vs. Inhibrx | Agenus vs. Enliven 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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