Correlation Between Pharvaris and Agenus

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

By analyzing existing cross correlation between Pharvaris BV and Agenus Inc, you can compare the effects of market volatilities on Pharvaris and Agenus 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 Pharvaris with a short position of Agenus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pharvaris and Agenus.

Diversification Opportunities for Pharvaris and Agenus

0.58

Correlation Coefficient

Pharvaris  Agenus

Very weak diversification

The 3 months correlation between Pharvaris and Agenus is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Pharvaris BV and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Pharvaris 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 Pharvaris BV are associated (or correlated) with Agenus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agenus Inc has no effect on the direction of Pharvaris i.e., Pharvaris and Agenus go up and down completely randomly.

Pair Corralation between Pharvaris and Agenus

Given the investment horizon of 90 days Pharvaris BV is expected to generate 0.54 times more return on investment than Agenus. However, Pharvaris BV is 1.85 times less risky than Agenus. It trades about -0.09 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.13 per unit of risk. If you would invest  1,902  in Pharvaris BV on December 30, 2024 and sell it today you would lose (322.00) from holding Pharvaris BV or give up 16.93% of portfolio value over 90 days.

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

Pharvaris BV  vs.  Agenus Inc

Pharvaris BV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pharvaris BV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Agenus Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agenus Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Pharvaris and Agenus

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

The idea behind Pharvaris BV and Agenus Inc 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.