Correlation Between Transgene and AGE Old

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

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

Diversification Opportunities for Transgene and AGE Old

0.0

Correlation Coefficient

Transgene  AGE Old

Pay attention - limited upside

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

Pair Corralation between Transgene and AGE Old

If you would invest (100.00) in AGE Old on December 29, 2024 and sell it today you would earn a total of  100.00  from holding AGE Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Transgene SA  vs.  AGE Old

Transgene SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Transgene SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Transgene is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

AGE Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGE Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, AGE Old is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Transgene and AGE Old

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

The idea behind Transgene SA and AGE Old 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.