Correlation Between PepGen and Alpha Teknova
Can any of the company-specific risk be diversified away by investing in both PepGen and Alpha Teknova 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 Alpha Teknova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PepGen and Alpha Teknova, you can compare the effects of market volatilities on PepGen and Alpha Teknova 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 Alpha Teknova. Check out your portfolio center. Please also check ongoing floating volatility patterns of PepGen and Alpha Teknova.
Diversification Opportunities for PepGen and Alpha Teknova
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PepGen and Alpha is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Alpha Teknova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Teknova 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 Alpha Teknova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Teknova has no effect on the direction of PepGen i.e., PepGen and Alpha Teknova go up and down completely randomly.
Pair Corralation between PepGen and Alpha Teknova
Given the investment horizon of 90 days PepGen is expected to under-perform the Alpha Teknova. But the stock apears to be less risky and, when comparing its historical volatility, PepGen is 1.13 times less risky than Alpha Teknova. The stock trades about -0.2 of its potential returns per unit of risk. The Alpha Teknova is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 706.00 in Alpha Teknova on August 30, 2024 and sell it today you would earn a total of 29.00 from holding Alpha Teknova or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PepGen vs. Alpha Teknova
Performance |
| Timeline |
| PepGen |
| Alpha Teknova |
PepGen and Alpha Teknova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PepGen and Alpha Teknova
The main advantage of trading using opposite PepGen and Alpha Teknova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen position performs unexpectedly, Alpha Teknova 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 Alpha Teknova will offset losses from the drop in Alpha Teknova's long position.The idea behind PepGen and Alpha Teknova pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Alpha Teknova vs. Collegium Pharmaceutical | Alpha Teknova vs. Phibro Animal Health | Alpha Teknova vs. ANI Pharmaceuticals | Alpha Teknova vs. Procaps Group SA |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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