Correlation Between PepGen and Invivyd

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

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

Diversification Opportunities for PepGen and Invivyd

-0.54

Correlation Coefficient

PepGen  Invivyd

Excellent diversification

The 3 months correlation between PepGen and Invivyd is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Invivyd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invivyd 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 Invivyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invivyd has no effect on the direction of PepGen i.e., PepGen and Invivyd go up and down completely randomly.

Pair Corralation between PepGen and Invivyd

Given the investment horizon of 90 days PepGen is expected to under-perform the Invivyd. But the stock apears to be less risky and, when comparing its historical volatility, PepGen is 1.94 times less risky than Invivyd. The stock trades about -0.04 of its potential returns per unit of risk. The Invivyd is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  46.00  in Invivyd on December 30, 2024 and sell it today you would earn a total of  14.00  from holding Invivyd or generate 30.43% return on investment over 90 days.

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

PepGen  vs.  Invivyd

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.

Invivyd

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Invivyd are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Invivyd exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PepGen and Invivyd

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

The idea behind PepGen and Invivyd 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 CEOs Directory module to screen CEOs from public companies around the world.