Correlation Between Dynavax Technologies and Agenus

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

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

Diversification Opportunities for Dynavax Technologies and Agenus

0.58

Correlation Coefficient

Dynavax Technologies  Agenus

Very weak diversification

The 3 months correlation between Dynavax and Agenus is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Dynavax Technologies and Agenus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agenus Inc and Dynavax Technologies 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 Dynavax Technologies 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 Dynavax Technologies i.e., Dynavax Technologies and Agenus go up and down completely randomly.

Pair Corralation between Dynavax Technologies and Agenus

Given the investment horizon of 90 days Dynavax Technologies is expected to generate 0.28 times more return on investment than Agenus. However, Dynavax Technologies is 3.56 times less risky than Agenus. It trades about 0.01 of its potential returns per unit of risk. Agenus Inc is currently generating about -0.03 per unit of risk. If you would invest  1,099  in Dynavax Technologies on February 15, 2024 and sell it today you would earn a total of  1.00  from holding Dynavax Technologies or generate 0.09% return on investment over 90 days.

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

Dynavax Technologies  vs.  Agenus Inc

Dynavax Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dynavax Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Agenus Inc

Risk-Adjusted Performance

0 of 100

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 very healthy technical and fundamental indicators, Agenus is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Dynavax Technologies and Agenus

The main advantage of trading using opposite Dynavax Technologies and Agenus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynavax Technologies 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 Dynavax Technologies 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.