Correlation Between Agenus and Danaher
Can any of the company-specific risk be diversified away by investing in both Agenus and Danaher 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 Agenus and Danaher into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agenus Inc and Danaher, you can compare the effects of market volatilities on Agenus and Danaher 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 Agenus with a short position of Danaher. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agenus and Danaher.
Diversification Opportunities for Agenus and Danaher
Weak diversification
The 3 months correlation between Agenus and Danaher is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Agenus Inc and Danaher in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danaher and Agenus 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 Agenus Inc are associated (or correlated) with Danaher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danaher has no effect on the direction of Agenus i.e., Agenus and Danaher go up and down completely randomly.
Pair Corralation between Agenus and Danaher
Given the investment horizon of 90 days Agenus Inc is expected to under-perform the Danaher. In addition to that, Agenus is 4.76 times more volatile than Danaher. It trades about -0.17 of its total potential returns per unit of risk. Danaher is currently generating about 0.04 per unit of volatility. If you would invest 24,753 in Danaher on January 25, 2024 and sell it today you would earn a total of 288.00 from holding Danaher or generate 1.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Agenus Inc vs. Danaher
Performance |
Timeline |
Agenus Inc |
Danaher |
Agenus and Danaher Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agenus and Danaher
The main advantage of trading using opposite Agenus and Danaher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agenus position performs unexpectedly, Danaher 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 Danaher will offset losses from the drop in Danaher's long position.Agenus vs. Galera Therapeutics | Agenus vs. Marker Therapeutics | Agenus vs. Edgewise Therapeutics | Agenus vs. Adaptimmune Therapeutics Plc |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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