Correlation Between PepGen and Orchestra BioMed
Can any of the company-specific risk be diversified away by investing in both PepGen and Orchestra BioMed 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 Orchestra BioMed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and Orchestra BioMed Holdings, you can compare the effects of market volatilities on PepGen and Orchestra BioMed 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 Orchestra BioMed. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Orchestra BioMed.
Diversification Opportunities for PepGen and Orchestra BioMed
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PepGen and Orchestra is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Orchestra BioMed Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orchestra BioMed Holdings 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 Orchestra BioMed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orchestra BioMed Holdings has no effect on the direction of PepGen i.e., PepGen and Orchestra BioMed go up and down completely randomly.
Pair Corralation between PepGen and Orchestra BioMed
Given the investment horizon of 90 days PepGen is expected to generate 1.13 times more return on investment than Orchestra BioMed. However, PepGen is 1.13 times more volatile than Orchestra BioMed Holdings. It trades about 0.02 of its potential returns per unit of risk. Orchestra BioMed Holdings is currently generating about 0.01 per unit of risk. If you would invest 634.00 in PepGen on September 2, 2024 and sell it today you would lose (129.00) from holding PepGen or give up 20.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PepGen vs. Orchestra BioMed Holdings
Performance |
| Timeline |
| PepGen |
| Orchestra BioMed Holdings |
PepGen and Orchestra BioMed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and Orchestra BioMed
The main advantage of trading using opposite PepGen and Orchestra BioMed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen position performs unexpectedly, Orchestra BioMed 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 Orchestra BioMed will offset losses from the drop in Orchestra BioMed's long position.| PepGen vs. Pmv Pharmaceuticals | PepGen vs. Eliem Therapeutics | PepGen vs. MediciNova | PepGen vs. Pharvaris BV |
| Orchestra BioMed vs. Thai Beverage PCL | Orchestra BioMed vs. Aterian | Orchestra BioMed vs. Westrock Coffee | Orchestra BioMed vs. Keurig Dr Pepper |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |