Correlation Between Viatris and Agenus
Can any of the company-specific risk be diversified away by investing in both Viatris 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 Viatris and Agenus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viatris and Agenus Inc, you can compare the effects of market volatilities on Viatris 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 Viatris with a short position of Agenus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viatris and Agenus.
Diversification Opportunities for Viatris and Agenus
Excellent diversification
The 3 months correlation between Viatris and Agenus is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Viatris and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Viatris 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 Viatris 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 Viatris i.e., Viatris and Agenus go up and down completely randomly.
Pair Corralation between Viatris and Agenus
Given the investment horizon of 90 days Viatris is expected to generate 0.25 times more return on investment than Agenus. However, Viatris is 3.93 times less risky than Agenus. It trades about 0.06 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.04 per unit of risk. If you would invest 910.00 in Viatris on August 31, 2024 and sell it today you would earn a total of 412.00 from holding Viatris or generate 45.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viatris vs. Agenus Inc
Performance |
| Timeline |
| Viatris |
| Agenus Inc |
Viatris and Agenus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viatris and Agenus
The main advantage of trading using opposite Viatris and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viatris 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.The idea behind Viatris and Agenus Inc 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.| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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