Correlation Between PepGen and Crescita Therapeutics
Can any of the company-specific risk be diversified away by investing in both PepGen and Crescita 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 Crescita Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and Crescita Therapeutics, you can compare the effects of market volatilities on PepGen and Crescita 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 Crescita Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Crescita Therapeutics.
Diversification Opportunities for PepGen and Crescita Therapeutics
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PepGen and Crescita is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Crescita Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescita 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 Crescita Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescita Therapeutics has no effect on the direction of PepGen i.e., PepGen and Crescita Therapeutics go up and down completely randomly.
Pair Corralation between PepGen and Crescita Therapeutics
Given the investment horizon of 90 days PepGen is expected to under-perform the Crescita Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, PepGen is 18.09 times less risky than Crescita Therapeutics. The stock trades about -0.16 of its potential returns per unit of risk. The Crescita Therapeutics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 32.00 in Crescita Therapeutics on September 3, 2024 and sell it today you would earn a total of 13.00 from holding Crescita Therapeutics or generate 40.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
PepGen vs. Crescita Therapeutics
Performance |
| Timeline |
| PepGen |
| Crescita Therapeutics |
PepGen and Crescita Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and Crescita Therapeutics
The main advantage of trading using opposite PepGen and Crescita Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen position performs unexpectedly, Crescita 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 Crescita Therapeutics will offset losses from the drop in Crescita Therapeutics' long position.| PepGen vs. DiaMedica Therapeutics | PepGen vs. Lyra Therapeutics | PepGen vs. Centessa Pharmaceuticals PLC |
| Crescita Therapeutics vs. Pmv Pharmaceuticals | Crescita Therapeutics vs. MediciNova | Crescita Therapeutics vs. Pharvaris BV | Crescita Therapeutics 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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