Correlation Between Cyteir Therapeutics and PepGen

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

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

Diversification Opportunities for Cyteir Therapeutics and PepGen

0.0

Correlation Coefficient

Cyteir Therapeutics  PepGen

Pay attention - limited upside

The 3 months correlation between Cyteir and PepGen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cyteir Therapeutics and PepGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PepGen and Cyteir Therapeutics 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 Cyteir Therapeutics are associated (or correlated) with PepGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PepGen has no effect on the direction of Cyteir Therapeutics i.e., Cyteir Therapeutics and PepGen go up and down completely randomly.

Pair Corralation between Cyteir Therapeutics and PepGen

If you would invest  125.00  in PepGen on December 4, 2024 and sell it today you would earn a total of  156.00  from holding PepGen or generate 124.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cyteir Therapeutics  vs.  PepGen

Cyteir Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cyteir Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cyteir Therapeutics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

PepGen

Risk-Adjusted Performance

Very Weak

Over the last 90 days PepGen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Cyteir Therapeutics and PepGen

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

The idea behind Cyteir Therapeutics and PepGen 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.