Correlation Between Madrigal Pharmaceuticals and Agenus
Can any of the company-specific risk be diversified away by investing in both Madrigal Pharmaceuticals 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 Madrigal Pharmaceuticals and Agenus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Madrigal Pharmaceuticals and Agenus Inc, you can compare the effects of market volatilities on Madrigal Pharmaceuticals 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 Madrigal Pharmaceuticals with a short position of Agenus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Madrigal Pharmaceuticals and Agenus.
Diversification Opportunities for Madrigal Pharmaceuticals and Agenus
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Madrigal and Agenus is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Madrigal Pharmaceuticals and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Madrigal Pharmaceuticals 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 Madrigal Pharmaceuticals 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 Madrigal Pharmaceuticals i.e., Madrigal Pharmaceuticals and Agenus go up and down completely randomly.
Pair Corralation between Madrigal Pharmaceuticals and Agenus
Given the investment horizon of 90 days Madrigal Pharmaceuticals is expected to generate 0.53 times more return on investment than Agenus. However, Madrigal Pharmaceuticals is 1.88 times less risky than Agenus. It trades about 0.08 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.04 per unit of risk. If you would invest 19,094 in Madrigal Pharmaceuticals on August 24, 2024 and sell it today you would earn a total of 15,303 from holding Madrigal Pharmaceuticals or generate 80.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Madrigal Pharmaceuticals vs. Agenus Inc
Performance |
| Timeline |
| Madrigal Pharmaceuticals |
| Agenus Inc |
Madrigal Pharmaceuticals and Agenus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Madrigal Pharmaceuticals and Agenus
The main advantage of trading using opposite Madrigal Pharmaceuticals and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Madrigal Pharmaceuticals 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.| Madrigal Pharmaceuticals vs. Lyra Therapeutics | Madrigal Pharmaceuticals vs. Hookipa Pharma | Madrigal Pharmaceuticals vs. Cingulate Warrants | Madrigal Pharmaceuticals vs. SAB Biotherapeutics |
| Agenus vs. Marker Therapeutics | Agenus vs. Edgewise Therapeutics | Agenus vs. Adaptimmune Therapeutics Plc | Agenus vs. Mereo BioPharma Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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