Correlation Between PDS Biotechnology and Agenus

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

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

Diversification Opportunities for PDS Biotechnology and Agenus

0.49

Correlation Coefficient

PDS Biotechnology  Agenus

Very weak diversification

The 3 months correlation between PDS and Agenus is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding PDS Biotechnology Corp and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and PDS Biotechnology 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 PDS Biotechnology Corp 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 PDS Biotechnology i.e., PDS Biotechnology and Agenus go up and down completely randomly.

Pair Corralation between PDS Biotechnology and Agenus

Given the investment horizon of 90 days PDS Biotechnology Corp is expected to generate 1.15 times more return on investment than Agenus. However, PDS Biotechnology is 1.15 times more volatile than Agenus Inc. It trades about -0.05 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.13 per unit of risk. If you would invest  171.00  in PDS Biotechnology Corp on December 27, 2024 and sell it today you would lose (46.00) from holding PDS Biotechnology Corp or give up 26.9% of portfolio value over 90 days.

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

PDS Biotechnology Corp  vs.  Agenus Inc

PDS Biotechnology Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days PDS Biotechnology Corp 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 somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Agenus Inc

Risk-Adjusted Performance

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

Pair Trading with PDS Biotechnology and Agenus

The main advantage of trading using opposite PDS Biotechnology and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PDS Biotechnology 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 PDS Biotechnology Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.