Correlation Between PepGen and Protect Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both PepGen and Protect Pharmaceutical 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 Protect Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and Protect Pharmaceutical, you can compare the effects of market volatilities on PepGen and Protect Pharmaceutical 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 Protect Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Protect Pharmaceutical.
Diversification Opportunities for PepGen and Protect Pharmaceutical
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PepGen and Protect is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Protect Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protect Pharmaceutical 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 Protect Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protect Pharmaceutical has no effect on the direction of PepGen i.e., PepGen and Protect Pharmaceutical go up and down completely randomly.
Pair Corralation between PepGen and Protect Pharmaceutical
Given the investment horizon of 90 days PepGen is expected to generate 0.91 times more return on investment than Protect Pharmaceutical. However, PepGen is 1.1 times less risky than Protect Pharmaceutical. It trades about -0.04 of its potential returns per unit of risk. Protect Pharmaceutical is currently generating about -0.08 per unit of risk. If you would invest 679.00 in PepGen on September 4, 2024 and sell it today you would lose (82.00) from holding PepGen or give up 12.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PepGen vs. Protect Pharmaceutical
Performance |
| Timeline |
| PepGen |
| Protect Pharmaceutical |
PepGen and Protect Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and Protect Pharmaceutical
The main advantage of trading using opposite PepGen and Protect Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen position performs unexpectedly, Protect Pharmaceutical 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 Protect Pharmaceutical will offset losses from the drop in Protect Pharmaceutical's long position.| PepGen vs. Pmv Pharmaceuticals | PepGen vs. Eliem Therapeutics | PepGen vs. MediciNova | PepGen vs. Pharvaris BV |
| Protect Pharmaceutical vs. Pmv Pharmaceuticals | Protect Pharmaceutical vs. MediciNova | Protect Pharmaceutical vs. Pharvaris BV | Protect Pharmaceutical 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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