Correlation Between Equillium and Agenus

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

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

Diversification Opportunities for Equillium and Agenus

0.66

Correlation Coefficient

Equillium  Agenus

Poor diversification

The 3 months correlation between Equillium and Agenus is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Equillium 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 Equillium 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 Equillium i.e., Equillium and Agenus go up and down completely randomly.

Pair Corralation between Equillium and Agenus

Allowing for the 90-day total investment horizon Equillium is expected to generate 1.01 times more return on investment than Agenus. However, Equillium is 1.01 times more volatile than Agenus Inc. It trades about 0.02 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.05 per unit of risk. If you would invest  110.00  in Equillium on October 4, 2024 and sell it today you would lose (35.00) from holding Equillium or give up 31.82% of portfolio value over 90 days.

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

Equillium  vs.  Agenus Inc

Equillium

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Equillium are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Equillium may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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 Equillium and Agenus

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

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.