Correlation Between PepGen and Multicell Techs

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

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

Diversification Opportunities for PepGen and Multicell Techs

0.0

Correlation Coefficient

PepGen  Multicell Techs

Pay attention - limited upside

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

Pair Corralation between PepGen and Multicell Techs

If you would invest  0.00  in Multicell Techs on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Multicell Techs or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

PepGen  vs.  Multicell Techs

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 conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Multicell Techs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Multicell Techs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Multicell Techs is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with PepGen and Multicell Techs

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

The idea behind PepGen and Multicell Techs 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.