Correlation Between Awakn Life and AgeX Therapeutics

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

By analyzing existing cross correlation between Awakn Life Sciences and AgeX Therapeutics, you can compare the effects of market volatilities on Awakn Life and AgeX Therapeutics 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 Awakn Life with a short position of AgeX Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awakn Life and AgeX Therapeutics.

Diversification Opportunities for Awakn Life and AgeX Therapeutics

0.35

Correlation Coefficient

Awakn Life  AgeX Therapeutics

Weak diversification

The 3 months correlation between Awakn and AgeX is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Awakn Life Sciences and AgeX Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgeX Therapeutics and Awakn Life 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 Awakn Life Sciences are associated (or correlated) with AgeX Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgeX Therapeutics has no effect on the direction of Awakn Life i.e., Awakn Life and AgeX Therapeutics go up and down completely randomly.

Pair Corralation between Awakn Life and AgeX Therapeutics

If you would invest  74.00  in AgeX Therapeutics on September 15, 2024 and sell it today you would earn a total of  0.00  from holding AgeX Therapeutics or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

Awakn Life Sciences  vs.  AgeX Therapeutics

Awakn Life Sciences

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Awakn Life Sciences are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Awakn Life reported solid returns over the last few months and may actually be approaching a breakup point.

AgeX Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Awakn Life and AgeX Therapeutics

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

The idea behind Awakn Life Sciences and AgeX Therapeutics 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.