Correlation Between NYSE Composite and PepGen
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and PepGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and PepGen, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of PepGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and PepGen.
Diversification Opportunities for NYSE Composite and PepGen
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and PepGen is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and PepGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PepGen and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and PepGen go up and down completely randomly.
Pair Corralation between NYSE Composite and PepGen
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.09 times more return on investment than PepGen. However, NYSE Composite is 10.63 times less risky than PepGen. It trades about 0.29 of its potential returns per unit of risk. PepGen is currently generating about -0.18 per unit of risk. If you would invest 1,941,627 in NYSE Composite on August 31, 2024 and sell it today you would earn a total of 79,355 from holding NYSE Composite or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. PepGen
Performance |
| Timeline |
NYSE Composite and PepGen Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
PepGen
Pair trading matchups for PepGen
Pair Trading with NYSE Composite and PepGen
The main advantage of trading using opposite NYSE Composite and PepGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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