Correlation Between Agenus and BioCryst Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both Agenus and BioCryst Pharmaceuticals 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 Agenus and BioCryst Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Agenus Inc and BioCryst Pharmaceuticals, you can compare the effects of market volatilities on Agenus and BioCryst Pharmaceuticals 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 Agenus with a short position of BioCryst Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agenus and BioCryst Pharmaceuticals.

Diversification Opportunities for Agenus and BioCryst Pharmaceuticals

0.34

Correlation Coefficient

Agenus  BioCryst Pharmaceuticals

Weak diversification

The 3 months correlation between Agenus and BioCryst is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Agenus Inc and BioCryst Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioCryst Pharmaceuticals and Agenus 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 Agenus Inc are associated (or correlated) with BioCryst Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioCryst Pharmaceuticals has no effect on the direction of Agenus i.e., Agenus and BioCryst Pharmaceuticals go up and down completely randomly.

Pair Corralation between Agenus and BioCryst Pharmaceuticals

Given the investment horizon of 90 days Agenus Inc is expected to under-perform the BioCryst Pharmaceuticals. In addition to that, Agenus is 1.75 times more volatile than BioCryst Pharmaceuticals. It trades about -0.13 of its total potential returns per unit of risk. BioCryst Pharmaceuticals is currently generating about 0.04 per unit of volatility. If you would invest  753.00  in BioCryst Pharmaceuticals on December 28, 2024 and sell it today you would earn a total of  30.00  from holding BioCryst Pharmaceuticals or generate 3.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Agenus Inc  vs.  BioCryst Pharmaceuticals

Agenus Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agenus Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

BioCryst Pharmaceuticals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BioCryst Pharmaceuticals are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, BioCryst Pharmaceuticals may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Agenus and BioCryst Pharmaceuticals

The main advantage of trading using opposite Agenus and BioCryst Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agenus position performs unexpectedly, BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals will offset losses from the drop in BioCryst Pharmaceuticals' long position.

The idea behind Agenus Inc and BioCryst Pharmaceuticals 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.

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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.