Correlation Between PepGen and LIFE Old
Can any of the company-specific risk be diversified away by investing in both PepGen and LIFE Old 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 LIFE Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and LIFE Old, you can compare the effects of market volatilities on PepGen and LIFE Old 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 LIFE Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and LIFE Old.
Diversification Opportunities for PepGen and LIFE Old
Modest diversification
The 3 months correlation between PepGen and LIFE is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and LIFE Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFE Old 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 LIFE Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIFE Old has no effect on the direction of PepGen i.e., PepGen and LIFE Old go up and down completely randomly.
Pair Corralation between PepGen and LIFE Old
Given the investment horizon of 90 days PepGen is expected to under-perform the LIFE Old. In addition to that, PepGen is 1.0 times more volatile than LIFE Old. It trades about -0.05 of its total potential returns per unit of risk. LIFE Old is currently generating about -0.04 per unit of volatility. If you would invest 220.00 in LIFE Old on November 5, 2024 and sell it today you would lose (220.00) from holding LIFE Old or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 67.41% |
| Values | Daily Returns |
PepGen vs. LIFE Old
Performance |
| Timeline |
| PepGen |
| LIFE Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PepGen and LIFE Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and LIFE Old
The main advantage of trading using opposite PepGen and LIFE Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen position performs unexpectedly, LIFE Old 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 LIFE Old will offset losses from the drop in LIFE Old's long position.| PepGen vs. Pmv Pharmaceuticals | PepGen vs. MediciNova | PepGen vs. Pharvaris BV | PepGen vs. Molecular Partners AG |
| LIFE Old vs. Mereo BioPharma Group | LIFE Old vs. Terns Pharmaceuticals | LIFE Old vs. PDS Biotechnology Corp | LIFE Old vs. Inozyme Pharma |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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