Correlation Between PepGen and Easton Pharmaceutica

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

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

Diversification Opportunities for PepGen and Easton Pharmaceutica

0.0

Correlation Coefficient

PepGen  Easton Pharmaceutica

Pay attention - limited upside

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

Pair Corralation between PepGen and Easton Pharmaceutica

If you would invest  0.01  in Easton Pharmaceutica on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Easton Pharmaceutica 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.  Easton Pharmaceutica

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 weak 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.

Easton Pharmaceutica

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Easton Pharmaceutica has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Easton Pharmaceutica is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with PepGen and Easton Pharmaceutica

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

The idea behind PepGen and Easton Pharmaceutica 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.