Correlation Between Zenas BioPharma, and EnGene Holdings
Can any of the company-specific risk be diversified away by investing in both Zenas BioPharma, and EnGene Holdings 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 Zenas BioPharma, and EnGene Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zenas BioPharma, Common and enGene Holdings Common, you can compare the effects of market volatilities on Zenas BioPharma, and EnGene Holdings 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 Zenas BioPharma, with a short position of EnGene Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zenas BioPharma, and EnGene Holdings.
Diversification Opportunities for Zenas BioPharma, and EnGene Holdings
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zenas and EnGene is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Zenas BioPharma, Common and enGene Holdings Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enGene Holdings Common and Zenas BioPharma, 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 Zenas BioPharma, Common are associated (or correlated) with EnGene Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enGene Holdings Common has no effect on the direction of Zenas BioPharma, i.e., Zenas BioPharma, and EnGene Holdings go up and down completely randomly.
Pair Corralation between Zenas BioPharma, and EnGene Holdings
Given the investment horizon of 90 days Zenas BioPharma, Common is expected to under-perform the EnGene Holdings. In addition to that, Zenas BioPharma, is 1.89 times more volatile than enGene Holdings Common. It trades about -0.61 of its total potential returns per unit of risk. enGene Holdings Common is currently generating about -0.26 per unit of volatility. If you would invest 934.00 in enGene Holdings Common on August 24, 2024 and sell it today you would lose (167.00) from holding enGene Holdings Common or give up 17.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zenas BioPharma, Common vs. enGene Holdings Common
Performance |
| Timeline |
| Zenas BioPharma, Common |
| enGene Holdings Common |
Zenas BioPharma, and EnGene Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zenas BioPharma, and EnGene Holdings
The main advantage of trading using opposite Zenas BioPharma, and EnGene Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zenas BioPharma, position performs unexpectedly, EnGene Holdings 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 EnGene Holdings will offset losses from the drop in EnGene Holdings' long position.| Zenas BioPharma, vs. enGene Holdings Common | Zenas BioPharma, vs. GRI Bio | Zenas BioPharma, vs. Prime Medicine, Common | Zenas BioPharma, vs. Amylyx Pharmaceuticals |
| EnGene Holdings vs. Terns Pharmaceuticals | EnGene Holdings vs. Acumen Pharmaceuticals | EnGene Holdings vs. Inozyme Pharma | EnGene Holdings vs. X4 Pharmaceuticals |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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