Correlation Between PepGen and Deltagen

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

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

Diversification Opportunities for PepGen and Deltagen

0.0

Correlation Coefficient

PepGen  Deltagen

Pay attention - limited upside

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

Pair Corralation between PepGen and Deltagen

If you would invest  0.01  in Deltagen on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Deltagen or generate 0.0% return on investment over 90 days.

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

PepGen  vs.  Deltagen

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.

Deltagen

Risk-Adjusted Performance

Very Weak

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

Pair Trading with PepGen and Deltagen

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

The idea behind PepGen and Deltagen 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.