Correlation Between PepGen and C4 Therapeutics
Can any of the company-specific risk be diversified away by investing in both PepGen and C4 Therapeutics 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 C4 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and C4 Therapeutics, you can compare the effects of market volatilities on PepGen and C4 Therapeutics 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 C4 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and C4 Therapeutics.
Diversification Opportunities for PepGen and C4 Therapeutics
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PepGen and CCCC is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and C4 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C4 Therapeutics 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 C4 Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C4 Therapeutics has no effect on the direction of PepGen i.e., PepGen and C4 Therapeutics go up and down completely randomly.
Pair Corralation between PepGen and C4 Therapeutics
Given the investment horizon of 90 days PepGen is expected to under-perform the C4 Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, PepGen is 1.54 times less risky than C4 Therapeutics. The stock trades about -0.01 of its potential returns per unit of risk. The C4 Therapeutics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 323.00 in C4 Therapeutics on August 29, 2024 and sell it today you would earn a total of 96.00 from holding C4 Therapeutics or generate 29.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PepGen vs. C4 Therapeutics
Performance |
| Timeline |
| PepGen |
| C4 Therapeutics |
PepGen and C4 Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and C4 Therapeutics
The main advantage of trading using opposite PepGen and C4 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen position performs unexpectedly, C4 Therapeutics 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 C4 Therapeutics will offset losses from the drop in C4 Therapeutics' long position.| PepGen vs. Eliem Therapeutics | PepGen vs. Scpharmaceuticals | PepGen vs. Milestone Pharmaceuticals | PepGen vs. Seres Therapeutics |
| C4 Therapeutics vs. Shattuck Labs | C4 Therapeutics vs. Eliem Therapeutics | C4 Therapeutics vs. Prelude Therapeutics | C4 Therapeutics vs. Monte Rosa Therapeutics |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |