Correlation Between PepGen and Aytu BioScience
Can any of the company-specific risk be diversified away by investing in both PepGen and Aytu BioScience 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 PepGen and Aytu BioScience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and Aytu BioScience, you can compare the effects of market volatilities on PepGen and Aytu BioScience 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 PepGen with a short position of Aytu BioScience. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Aytu BioScience.
Diversification Opportunities for PepGen and Aytu BioScience
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PepGen and Aytu is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Aytu BioScience in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aytu BioScience and PepGen 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 PepGen are associated (or correlated) with Aytu BioScience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aytu BioScience has no effect on the direction of PepGen i.e., PepGen and Aytu BioScience go up and down completely randomly.
Pair Corralation between PepGen and Aytu BioScience
Given the investment horizon of 90 days PepGen is expected to under-perform the Aytu BioScience. In addition to that, PepGen is 1.47 times more volatile than Aytu BioScience. It trades about -0.15 of its total potential returns per unit of risk. Aytu BioScience is currently generating about -0.16 per unit of volatility. If you would invest 192.00 in Aytu BioScience on September 1, 2024 and sell it today you would lose (31.00) from holding Aytu BioScience or give up 16.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PepGen vs. Aytu BioScience
Performance |
| Timeline |
| PepGen |
| Aytu BioScience |
PepGen and Aytu BioScience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and Aytu BioScience
The main advantage of trading using opposite PepGen and Aytu BioScience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen position performs unexpectedly, Aytu BioScience 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 Aytu BioScience will offset losses from the drop in Aytu BioScience's long position.| PepGen vs. Pmv Pharmaceuticals | PepGen vs. Eliem Therapeutics | PepGen vs. MediciNova | PepGen vs. Pharvaris BV |
| Aytu BioScience vs. Aquestive Therapeutics | Aytu BioScience vs. Evoke Pharma | Aytu BioScience vs. Shionogi Co Ltd | Aytu BioScience vs. Sunshine Biopharma |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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