Correlation Between PepGen and LENZ Therapeutics
Can any of the company-specific risk be diversified away by investing in both PepGen and LENZ 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 LENZ Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and LENZ Therapeutics, you can compare the effects of market volatilities on PepGen and LENZ 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 LENZ Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and LENZ Therapeutics.
Diversification Opportunities for PepGen and LENZ Therapeutics
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PepGen and LENZ is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and LENZ Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENZ 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 LENZ Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LENZ Therapeutics has no effect on the direction of PepGen i.e., PepGen and LENZ Therapeutics go up and down completely randomly.
Pair Corralation between PepGen and LENZ Therapeutics
Given the investment horizon of 90 days PepGen is expected to generate 6.11 times more return on investment than LENZ Therapeutics. However, PepGen is 6.11 times more volatile than LENZ Therapeutics. It trades about 0.03 of its potential returns per unit of risk. LENZ Therapeutics is currently generating about -0.17 per unit of risk. If you would invest 186.00 in PepGen on November 28, 2024 and sell it today you would lose (26.00) from holding PepGen or give up 13.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PepGen vs. LENZ Therapeutics
Performance |
| Timeline |
| PepGen |
| LENZ Therapeutics |
PepGen and LENZ Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and LENZ Therapeutics
The main advantage of trading using opposite PepGen and LENZ Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen position performs unexpectedly, LENZ 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 LENZ Therapeutics will offset losses from the drop in LENZ Therapeutics' long position.| PepGen vs. Pmv Pharmaceuticals | PepGen vs. MediciNova | PepGen vs. Pharvaris BV | PepGen vs. Molecular Partners AG |
| LENZ Therapeutics vs. Dream Finders Homes | LENZ Therapeutics vs. Cementos Pacasmayo SAA | LENZ Therapeutics vs. Genfit | LENZ Therapeutics vs. Centessa Pharmaceuticals PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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