Correlation Between CorMedix and Precigen

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

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

Diversification Opportunities for CorMedix and Precigen

0.4

Correlation Coefficient

CorMedix  Precigen

Very weak diversification

The 3 months correlation between CorMedix and Precigen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding CorMedix and Precigen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precigen and CorMedix 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 CorMedix are associated (or correlated) with Precigen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precigen has no effect on the direction of CorMedix i.e., CorMedix and Precigen go up and down completely randomly.

Pair Corralation between CorMedix and Precigen

Given the investment horizon of 90 days CorMedix is expected to generate 3.04 times less return on investment than Precigen. But when comparing it to its historical volatility, CorMedix is 1.29 times less risky than Precigen. It trades about 0.1 of its potential returns per unit of risk. Precigen is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  75.00  in Precigen on December 21, 2024 and sell it today you would earn a total of  105.00  from holding Precigen or generate 140.0% return on investment over 90 days.

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

CorMedix  vs.  Precigen

CorMedix

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CorMedix are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain primary indicators, CorMedix exhibited solid returns over the last few months and may actually be approaching a breakup point.

Precigen

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Precigen are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Precigen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CorMedix and Precigen

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

The idea behind CorMedix and Precigen 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.