Correlation Between Design Therapeutics and Agenus

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

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

Diversification Opportunities for Design Therapeutics and Agenus

-0.52

Correlation Coefficient

Design Therapeutics  Agenus

Excellent diversification

The 3 months correlation between Design and Agenus is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Design Therapeutics and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Design 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 Design Therapeutics 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 Design Therapeutics i.e., Design Therapeutics and Agenus go up and down completely randomly.

Pair Corralation between Design Therapeutics and Agenus

Given the investment horizon of 90 days Design Therapeutics is expected to generate 0.84 times more return on investment than Agenus. However, Design Therapeutics is 1.18 times less risky than Agenus. It trades about 0.01 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.05 per unit of risk. If you would invest  857.00  in Design Therapeutics on October 13, 2024 and sell it today you would lose (405.00) from holding Design Therapeutics or give up 47.26% of portfolio value over 90 days.

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

Design Therapeutics  vs.  Agenus Inc

Design Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Design Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Design Therapeutics is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Agenus Inc

Risk-Adjusted Performance

0 of 100

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 February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Design Therapeutics and Agenus

The main advantage of trading using opposite Design Therapeutics and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Design Therapeutics 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 Design Therapeutics 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.