Correlation Between SAB Biotherapeutics and Agenus
Can any of the company-specific risk be diversified away by investing in both SAB Biotherapeutics and Agenus 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 SAB Biotherapeutics and Agenus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAB Biotherapeutics and Agenus Inc, you can compare the effects of market volatilities on SAB Biotherapeutics and Agenus 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 SAB Biotherapeutics with a short position of Agenus. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAB Biotherapeutics and Agenus.
Diversification Opportunities for SAB Biotherapeutics and Agenus
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SAB and Agenus is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding SAB Biotherapeutics and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and SAB Biotherapeutics 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 SAB Biotherapeutics are associated (or correlated) with Agenus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agenus Inc has no effect on the direction of SAB Biotherapeutics i.e., SAB Biotherapeutics and Agenus go up and down completely randomly.
Pair Corralation between SAB Biotherapeutics and Agenus
Assuming the 90 days horizon SAB Biotherapeutics is expected to generate 18.85 times more return on investment than Agenus. However, SAB Biotherapeutics is 18.85 times more volatile than Agenus Inc. It trades about 0.15 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.03 per unit of risk. If you would invest 4.10 in SAB Biotherapeutics on September 12, 2024 and sell it today you would earn a total of 2.90 from holding SAB Biotherapeutics or generate 70.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 74.6% |
| Values | Daily Returns |
SAB Biotherapeutics vs. Agenus Inc
Performance |
| Timeline |
| SAB Biotherapeutics |
| Agenus Inc |
SAB Biotherapeutics and Agenus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAB Biotherapeutics and Agenus
The main advantage of trading using opposite SAB Biotherapeutics and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAB Biotherapeutics position performs unexpectedly, Agenus 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 Agenus will offset losses from the drop in Agenus' long position.| SAB Biotherapeutics vs. SAB Biotherapeutics | SAB Biotherapeutics vs. Jasper Therapeutics | SAB Biotherapeutics vs. NRx Pharmaceuticals | SAB Biotherapeutics vs. Surrozen Warrant |
| Agenus vs. Marker Therapeutics | Agenus vs. Edgewise Therapeutics | Agenus vs. Adaptimmune Therapeutics Plc | Agenus vs. Mereo BioPharma Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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