Correlation Between Nuvation Bio and Evogene
Can any of the company-specific risk be diversified away by investing in both Nuvation Bio and Evogene 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 Nuvation Bio and Evogene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuvation Bio and Evogene, you can compare the effects of market volatilities on Nuvation Bio and Evogene 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 Nuvation Bio with a short position of Evogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuvation Bio and Evogene.
Diversification Opportunities for Nuvation Bio and Evogene
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nuvation and Evogene is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Nuvation Bio and Evogene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evogene and Nuvation Bio 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 Nuvation Bio are associated (or correlated) with Evogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evogene has no effect on the direction of Nuvation Bio i.e., Nuvation Bio and Evogene go up and down completely randomly.
Pair Corralation between Nuvation Bio and Evogene
Given the investment horizon of 90 days Nuvation Bio is expected to generate 0.9 times more return on investment than Evogene. However, Nuvation Bio is 1.11 times less risky than Evogene. It trades about 0.04 of its potential returns per unit of risk. Evogene is currently generating about -0.03 per unit of risk. If you would invest 186.00 in Nuvation Bio on September 2, 2024 and sell it today you would earn a total of 104.00 from holding Nuvation Bio or generate 55.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuvation Bio vs. Evogene
Performance |
| Timeline |
| Nuvation Bio |
| Evogene |
Nuvation Bio and Evogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuvation Bio and Evogene
The main advantage of trading using opposite Nuvation Bio and Evogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuvation Bio position performs unexpectedly, Evogene 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 Evogene will offset losses from the drop in Evogene's long position.| Nuvation Bio vs. Assembly Biosciences | Nuvation Bio vs. Instil Bio | Nuvation Bio vs. Achilles Therapeutics PLC | Nuvation Bio vs. NextCure |
| Evogene vs. Arcus Biosciences | Evogene vs. Fate Therapeutics | Evogene vs. Pluri Inc | Evogene vs. Lexaria Bioscience Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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