Correlation Between PepGen and Galectin Therapeutics

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

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

Diversification Opportunities for PepGen and Galectin Therapeutics

-0.12

Correlation Coefficient

PepGen  Galectin Therapeutics

Good diversification

The 3 months correlation between PepGen and Galectin is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Galectin Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galectin Therapeutics 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 Galectin Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galectin Therapeutics has no effect on the direction of PepGen i.e., PepGen and Galectin Therapeutics go up and down completely randomly.

Pair Corralation between PepGen and Galectin Therapeutics

Given the investment horizon of 90 days PepGen is expected to under-perform the Galectin Therapeutics. In addition to that, PepGen is 3.26 times more volatile than Galectin Therapeutics. It trades about -0.04 of its total potential returns per unit of risk. Galectin Therapeutics is currently generating about 0.14 per unit of volatility. If you would invest  110.00  in Galectin Therapeutics on December 29, 2024 and sell it today you would earn a total of  42.00  from holding Galectin Therapeutics or generate 38.18% return on investment over 90 days.

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

PepGen  vs.  Galectin Therapeutics

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.

Galectin Therapeutics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Galectin Therapeutics are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting essential indicators, Galectin Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PepGen and Galectin Therapeutics

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

The idea behind PepGen and Galectin Therapeutics 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.