Correlation Between Icosavax and AgeX Therapeutics
Can any of the company-specific risk be diversified away by investing in both Icosavax and AgeX Therapeutics 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 Icosavax and AgeX Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icosavax and AgeX Therapeutics, you can compare the effects of market volatilities on Icosavax and AgeX Therapeutics 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 Icosavax with a short position of AgeX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icosavax and AgeX Therapeutics.
Diversification Opportunities for Icosavax and AgeX Therapeutics
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Icosavax and AgeX is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Icosavax and AgeX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgeX Therapeutics and Icosavax 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 Icosavax are associated (or correlated) with AgeX Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgeX Therapeutics has no effect on the direction of Icosavax i.e., Icosavax and AgeX Therapeutics go up and down completely randomly.
Pair Corralation between Icosavax and AgeX Therapeutics
If you would invest 74.00 in AgeX Therapeutics on September 2, 2024 and sell it today you would earn a total of 0.00 from holding AgeX Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icosavax vs. AgeX Therapeutics
Performance |
| Timeline |
| Icosavax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AgeX Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Icosavax and AgeX Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icosavax and AgeX Therapeutics
The main advantage of trading using opposite Icosavax and AgeX Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icosavax position performs unexpectedly, AgeX Therapeutics 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 AgeX Therapeutics will offset losses from the drop in AgeX Therapeutics' long position.| Icosavax vs. Terns Pharmaceuticals | Icosavax vs. Amylyx Pharmaceuticals | Icosavax vs. Acumen Pharmaceuticals | Icosavax vs. Inozyme Pharma |
| AgeX Therapeutics vs. MAIA Biotechnology | AgeX Therapeutics vs. Larimar Therapeutics | AgeX Therapeutics vs. Lyra Therapeutics | AgeX Therapeutics vs. Lineage Cell 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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