Correlation Between PepGen and RenovaCare

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

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

Diversification Opportunities for PepGen and RenovaCare

0.0

Correlation Coefficient

PepGen  RenovaCare

Pay attention - limited upside

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

Pair Corralation between PepGen and RenovaCare

If you would invest  0.01  in RenovaCare on September 3, 2024 and sell it today you would earn a total of  0.00  from holding RenovaCare or generate 0.0% return on investment over 90 days.

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

PepGen  vs.  RenovaCare

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 unsteady 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.

RenovaCare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RenovaCare has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, RenovaCare is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with PepGen and RenovaCare

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

The idea behind PepGen and RenovaCare 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.