Correlation Between Elicio Therapeutics and EnGene Holdings

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

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

Diversification Opportunities for Elicio Therapeutics and EnGene Holdings

-0.07

Correlation Coefficient

Elicio Therapeutics  EnGene Holdings

Good diversification

The 3 months correlation between Elicio and EnGene is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Elicio Therapeutics and enGene Holdings Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enGene Holdings Common and Elicio 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 Elicio Therapeutics are associated (or correlated) with EnGene Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enGene Holdings Common has no effect on the direction of Elicio Therapeutics i.e., Elicio Therapeutics and EnGene Holdings go up and down completely randomly.

Pair Corralation between Elicio Therapeutics and EnGene Holdings

Given the investment horizon of 90 days Elicio Therapeutics is expected to generate 0.48 times more return on investment than EnGene Holdings. However, Elicio Therapeutics is 2.09 times less risky than EnGene Holdings. It trades about 0.2 of its potential returns per unit of risk. enGene Holdings Common is currently generating about 0.0 per unit of risk. If you would invest  488.00  in Elicio Therapeutics on December 20, 2024 and sell it today you would earn a total of  296.00  from holding Elicio Therapeutics or generate 60.66% return on investment over 90 days.

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

Elicio Therapeutics  vs.  enGene Holdings Common

Elicio Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Elicio Therapeutics are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Elicio Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

enGene Holdings Common

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Elicio Therapeutics and EnGene Holdings

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

The idea behind Elicio Therapeutics and enGene Holdings Common 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.