Correlation Between PepGen and Shattuck Labs
Can any of the company-specific risk be diversified away by investing in both PepGen and Shattuck Labs 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 Shattuck Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and Shattuck Labs, you can compare the effects of market volatilities on PepGen and Shattuck Labs 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 Shattuck Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Shattuck Labs.
Diversification Opportunities for PepGen and Shattuck Labs
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PepGen and Shattuck is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Shattuck Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shattuck Labs 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 Shattuck Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shattuck Labs has no effect on the direction of PepGen i.e., PepGen and Shattuck Labs go up and down completely randomly.
Pair Corralation between PepGen and Shattuck Labs
Given the investment horizon of 90 days PepGen is expected to under-perform the Shattuck Labs. In addition to that, PepGen is 1.17 times more volatile than Shattuck Labs. It trades about -0.41 of its total potential returns per unit of risk. Shattuck Labs is currently generating about -0.18 per unit of volatility. If you would invest 128.00 in Shattuck Labs on August 25, 2024 and sell it today you would lose (28.00) from holding Shattuck Labs or give up 21.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PepGen vs. Shattuck Labs
Performance |
| Timeline |
| PepGen |
| Shattuck Labs |
PepGen and Shattuck Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and Shattuck Labs
The main advantage of trading using opposite PepGen and Shattuck Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen position performs unexpectedly, Shattuck Labs 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 Shattuck Labs will offset losses from the drop in Shattuck Labs' long position.| PepGen vs. Pmv Pharmaceuticals | PepGen vs. Eliem Therapeutics | PepGen vs. MediciNova | PepGen vs. Pharvaris BV |
| Shattuck Labs vs. C4 Therapeutics | Shattuck Labs vs. Eliem Therapeutics | Shattuck Labs vs. Prelude Therapeutics | Shattuck Labs vs. Monte Rosa 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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