Correlation Between Replimune and Geron
Can any of the company-specific risk be diversified away by investing in both Replimune and Geron 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 Replimune and Geron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Replimune Group and Geron, you can compare the effects of market volatilities on Replimune and Geron 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 Replimune with a short position of Geron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Replimune and Geron.
Diversification Opportunities for Replimune and Geron
Very good diversification
The 3 months correlation between Replimune and Geron is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Replimune Group and Geron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron and Replimune 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 Replimune Group are associated (or correlated) with Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of Replimune i.e., Replimune and Geron go up and down completely randomly.
Pair Corralation between Replimune and Geron
Given the investment horizon of 90 days Replimune is expected to generate 1.25 times less return on investment than Geron. But when comparing it to its historical volatility, Replimune Group is 1.41 times less risky than Geron. It trades about 0.07 of its potential returns per unit of risk. Geron is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Geron on September 2, 2024 and sell it today you would earn a total of 203.00 from holding Geron or generate 97.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Replimune Group vs. Geron
Performance |
| Timeline |
| Replimune Group |
| Geron |
Replimune and Geron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Replimune and Geron
The main advantage of trading using opposite Replimune and Geron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Replimune position performs unexpectedly, Geron 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 Geron will offset losses from the drop in Geron's long position.| Replimune vs. Nuvalent | Replimune vs. Ventyx Biosciences | Replimune vs. Ascendis Pharma AS | Replimune vs. United Therapeutics |
| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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