Correlation Between PepGen and Structure Therapeutics
Can any of the company-specific risk be diversified away by investing in both PepGen and Structure 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 Structure Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and Structure Therapeutics American, you can compare the effects of market volatilities on PepGen and Structure 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 Structure Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Structure Therapeutics.
Diversification Opportunities for PepGen and Structure Therapeutics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PepGen and Structure is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Structure Therapeutics America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Structure 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 Structure Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Structure Therapeutics has no effect on the direction of PepGen i.e., PepGen and Structure Therapeutics go up and down completely randomly.
Pair Corralation between PepGen and Structure Therapeutics
Given the investment horizon of 90 days PepGen is expected to under-perform the Structure Therapeutics. In addition to that, PepGen is 1.29 times more volatile than Structure Therapeutics American. It trades about -0.24 of its total potential returns per unit of risk. Structure Therapeutics American is currently generating about -0.1 per unit of volatility. If you would invest 4,175 in Structure Therapeutics American on August 28, 2024 and sell it today you would lose (801.00) from holding Structure Therapeutics American or give up 19.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PepGen vs. Structure Therapeutics America
Performance |
| Timeline |
| PepGen |
| Structure Therapeutics |
PepGen and Structure Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and Structure Therapeutics
The main advantage of trading using opposite PepGen and Structure Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen position performs unexpectedly, Structure 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 Structure Therapeutics will offset losses from the drop in Structure Therapeutics' long position.| PepGen vs. Eliem Therapeutics | PepGen vs. Scpharmaceuticals | PepGen vs. Milestone Pharmaceuticals | PepGen vs. Seres Therapeutics |
| Structure Therapeutics vs. Eliem Therapeutics | Structure Therapeutics vs. Scpharmaceuticals | Structure Therapeutics vs. Milestone Pharmaceuticals | Structure Therapeutics vs. Seres 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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