Correlation Between Anavex Life and Agenus

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

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

Diversification Opportunities for Anavex Life and Agenus

0.07

Correlation Coefficient

Anavex Life  Agenus

Significant diversification

The 3 months correlation between Anavex and Agenus is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Anavex Life Sciences and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Anavex Life 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 Anavex Life Sciences 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 Anavex Life i.e., Anavex Life and Agenus go up and down completely randomly.

Pair Corralation between Anavex Life and Agenus

Given the investment horizon of 90 days Anavex Life Sciences is expected to generate 0.93 times more return on investment than Agenus. However, Anavex Life Sciences is 1.07 times less risky than Agenus. It trades about -0.01 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.13 per unit of risk. If you would invest  1,118  in Anavex Life Sciences on December 21, 2024 and sell it today you would lose (125.00) from holding Anavex Life Sciences or give up 11.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Anavex Life Sciences  vs.  Agenus Inc

Anavex Life Sciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Anavex Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Anavex Life is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

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.

Pair Trading with Anavex Life and Agenus

The main advantage of trading using opposite Anavex Life and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anavex Life 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 Anavex Life Sciences 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.

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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.