Correlation Between PepGen and Tevogen Bio

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

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

Diversification Opportunities for PepGen and Tevogen Bio

-0.53

Correlation Coefficient

PepGen  Tevogen Bio

Excellent diversification

The 3 months correlation between PepGen and Tevogen is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Tevogen Bio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tevogen Bio Holdings 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 Tevogen Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tevogen Bio Holdings has no effect on the direction of PepGen i.e., PepGen and Tevogen Bio go up and down completely randomly.

Pair Corralation between PepGen and Tevogen Bio

Given the investment horizon of 90 days PepGen is expected to under-perform the Tevogen Bio. But the stock apears to be less risky and, when comparing its historical volatility, PepGen is 5.85 times less risky than Tevogen Bio. The stock trades about -0.19 of its potential returns per unit of risk. The Tevogen Bio Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  52.00  in Tevogen Bio Holdings on August 30, 2024 and sell it today you would earn a total of  85.00  from holding Tevogen Bio Holdings or generate 163.46% 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.  Tevogen Bio Holdings

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 fragile 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.

Tevogen Bio Holdings

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tevogen Bio Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Tevogen Bio displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PepGen and Tevogen Bio

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

The idea behind PepGen and Tevogen Bio Holdings 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.