Correlation Between Bio Techne and Agenus
Can any of the company-specific risk be diversified away by investing in both Bio Techne 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 Bio Techne and Agenus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Techne Corp and Agenus Inc, you can compare the effects of market volatilities on Bio Techne 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 Bio Techne with a short position of Agenus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Techne and Agenus.
Diversification Opportunities for Bio Techne and Agenus
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bio and Agenus is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bio Techne Corp and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Bio Techne 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 Bio Techne Corp 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 Bio Techne i.e., Bio Techne and Agenus go up and down completely randomly.
Pair Corralation between Bio Techne and Agenus
Given the investment horizon of 90 days Bio Techne Corp is expected to generate 0.3 times more return on investment than Agenus. However, Bio Techne Corp is 3.39 times less risky than Agenus. It trades about 0.03 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.03 per unit of risk. If you would invest 6,776 in Bio Techne Corp on September 2, 2024 and sell it today you would earn a total of 760.00 from holding Bio Techne Corp or generate 11.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bio Techne Corp vs. Agenus Inc
Performance |
| Timeline |
| Bio Techne Corp |
| Agenus Inc |
Bio Techne and Agenus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bio Techne and Agenus
The main advantage of trading using opposite Bio Techne and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Techne 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.| Bio Techne vs. Biomarin Pharmaceutical | Bio Techne vs. Vaxcyte | Bio Techne vs. Liquidia Technologies | Bio Techne vs. Legend Biotech Corp |
| Agenus vs. Tff Pharmaceuticals | Agenus vs. Eliem Therapeutics | Agenus vs. Inhibrx | Agenus vs. Enliven 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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