Correlation Between Larimar Therapeutics and PepGen
Can any of the company-specific risk be diversified away by investing in both Larimar Therapeutics 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 Larimar Therapeutics and PepGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Larimar Therapeutics and PepGen, you can compare the effects of market volatilities on Larimar Therapeutics 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 Larimar Therapeutics with a short position of PepGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Larimar Therapeutics and PepGen.
Diversification Opportunities for Larimar Therapeutics and PepGen
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Larimar and PepGen is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Larimar Therapeutics and PepGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PepGen and Larimar 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 Larimar Therapeutics 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 Larimar Therapeutics i.e., Larimar Therapeutics and PepGen go up and down completely randomly.
Pair Corralation between Larimar Therapeutics and PepGen
Given the investment horizon of 90 days Larimar Therapeutics is expected to generate 0.84 times more return on investment than PepGen. However, Larimar Therapeutics is 1.18 times less risky than PepGen. It trades about 0.07 of its potential returns per unit of risk. PepGen is currently generating about 0.02 per unit of risk. If you would invest 364.00 in Larimar Therapeutics on September 2, 2024 and sell it today you would earn a total of 269.00 from holding Larimar Therapeutics or generate 73.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Larimar Therapeutics vs. PepGen
Performance |
| Timeline |
| Larimar Therapeutics |
| PepGen |
Larimar Therapeutics and PepGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Larimar Therapeutics and PepGen
The main advantage of trading using opposite Larimar Therapeutics and PepGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Larimar Therapeutics 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.| Larimar Therapeutics vs. Vaxcyte | Larimar Therapeutics vs. Syndax Pharmaceuticals | Larimar Therapeutics vs. Merus BV | Larimar Therapeutics vs. Sutro Biopharma |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |