Correlation Between PepGen and Bionik Laboratories
Can any of the company-specific risk be diversified away by investing in both PepGen and Bionik Laboratories 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 Bionik Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and Bionik Laboratories Corp, you can compare the effects of market volatilities on PepGen and Bionik Laboratories 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 Bionik Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Bionik Laboratories.
Diversification Opportunities for PepGen and Bionik Laboratories
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PepGen and Bionik is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Bionik Laboratories Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionik Laboratories Corp 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 Bionik Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionik Laboratories Corp has no effect on the direction of PepGen i.e., PepGen and Bionik Laboratories go up and down completely randomly.
Pair Corralation between PepGen and Bionik Laboratories
If you would invest 679.00 in PepGen on September 5, 2024 and sell it today you would lose (44.00) from holding PepGen or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PepGen vs. Bionik Laboratories Corp
Performance |
| Timeline |
| PepGen |
| Bionik Laboratories Corp |
PepGen and Bionik Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and Bionik Laboratories
The main advantage of trading using opposite PepGen and Bionik Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen position performs unexpectedly, Bionik Laboratories 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 Bionik Laboratories will offset losses from the drop in Bionik Laboratories' long position.| PepGen vs. Candel Therapeutics | PepGen vs. Cingulate Warrants | PepGen vs. Unicycive Therapeutics | PepGen vs. Cardio Diagnostics Holdings |
| Bionik Laboratories vs. Pmv Pharmaceuticals | Bionik Laboratories vs. MediciNova | Bionik Laboratories vs. Pharvaris BV | Bionik Laboratories vs. PepGen |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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