Correlation Between PepGen and Eliem Therapeutics
Can any of the company-specific risk be diversified away by investing in both PepGen and Eliem 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 Eliem Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and Eliem Therapeutics, you can compare the effects of market volatilities on PepGen and Eliem 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 Eliem Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Eliem Therapeutics.
Diversification Opportunities for PepGen and Eliem Therapeutics
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PepGen and Eliem is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Eliem Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eliem 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 Eliem Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eliem Therapeutics has no effect on the direction of PepGen i.e., PepGen and Eliem Therapeutics go up and down completely randomly.
Pair Corralation between PepGen and Eliem Therapeutics
Given the investment horizon of 90 days PepGen is expected to under-perform the Eliem Therapeutics. In addition to that, PepGen is 1.26 times more volatile than Eliem Therapeutics. It trades about -0.45 of its total potential returns per unit of risk. Eliem Therapeutics is currently generating about -0.36 per unit of volatility. If you would invest 475.00 in Eliem Therapeutics on August 24, 2024 and sell it today you would lose (167.00) from holding Eliem Therapeutics or give up 35.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PepGen vs. Eliem Therapeutics
Performance |
| Timeline |
| PepGen |
| Eliem Therapeutics |
PepGen and Eliem Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and Eliem Therapeutics
The main advantage of trading using opposite PepGen and Eliem Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen position performs unexpectedly, Eliem 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 Eliem Therapeutics will offset losses from the drop in Eliem Therapeutics' long position.| PepGen vs. Pmv Pharmaceuticals | PepGen vs. Eliem Therapeutics | PepGen vs. MediciNova | PepGen vs. Pharvaris BV |
| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |