Correlation Between PepGen and Nutra Pharma

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

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

Diversification Opportunities for PepGen and Nutra Pharma

0.01

Correlation Coefficient

PepGen  Nutra Pharma

Significant diversification

The 3 months correlation between PepGen and Nutra is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Nutra Pharma Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nutra Pharma Corp 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 Nutra Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nutra Pharma Corp has no effect on the direction of PepGen i.e., PepGen and Nutra Pharma go up and down completely randomly.

Pair Corralation between PepGen and Nutra Pharma

Given the investment horizon of 90 days PepGen is expected to under-perform the Nutra Pharma. But the stock apears to be less risky and, when comparing its historical volatility, PepGen is 13.34 times less risky than Nutra Pharma. The stock trades about -0.04 of its potential returns per unit of risk. The Nutra Pharma Corp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Nutra Pharma Corp on December 28, 2024 and sell it today you would earn a total of  0.01  from holding Nutra Pharma Corp or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	43.33%
Values	Daily Returns

PepGen  vs.  Nutra Pharma Corp

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.

Nutra Pharma Corp

Risk-Adjusted Performance

Good

Over the last 90 days Nutra Pharma Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather weak technical indicators, Nutra Pharma exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PepGen and Nutra Pharma

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

The idea behind PepGen and Nutra Pharma Corp 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..