Correlation Between PepGen and Intracellular

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

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

Diversification Opportunities for PepGen and Intracellular

-0.87

Correlation Coefficient

PepGen  Intracellular

Pay attention - limited upside

The 3 months correlation between PepGen and Intracellular is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Intracellular Th in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracellular Th 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 Intracellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intracellular Th has no effect on the direction of PepGen i.e., PepGen and Intracellular go up and down completely randomly.

Pair Corralation between PepGen and Intracellular

Given the investment horizon of 90 days PepGen is expected to under-perform the Intracellular. In addition to that, PepGen is 2.2 times more volatile than Intracellular Th. It trades about -0.17 of its total potential returns per unit of risk. Intracellular Th is currently generating about 0.14 per unit of volatility. If you would invest  7,300  in Intracellular Th on August 31, 2024 and sell it today you would earn a total of  1,359  from holding Intracellular Th or generate 18.62% return on investment over 90 days.

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

PepGen  vs.  Intracellular Th

PepGen

Risk-Adjusted Performance

0 of 100

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 December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Intracellular Th

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intracellular Th are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain fundamental indicators, Intracellular demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PepGen and Intracellular

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

The idea behind PepGen and Intracellular Th 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.