Correlation Between Capricor Therapeutics and VectivBio Holding
Can any of the company-specific risk be diversified away by investing in both Capricor Therapeutics and VectivBio Holding 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 Capricor Therapeutics and VectivBio Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capricor Therapeutics and VectivBio Holding AG, you can compare the effects of market volatilities on Capricor Therapeutics and VectivBio Holding 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 Capricor Therapeutics with a short position of VectivBio Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capricor Therapeutics and VectivBio Holding.
Diversification Opportunities for Capricor Therapeutics and VectivBio Holding
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capricor and VectivBio is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Capricor Therapeutics and VectivBio Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VectivBio Holding and Capricor Therapeutics 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 Capricor Therapeutics are associated (or correlated) with VectivBio Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VectivBio Holding has no effect on the direction of Capricor Therapeutics i.e., Capricor Therapeutics and VectivBio Holding go up and down completely randomly.
Pair Corralation between Capricor Therapeutics and VectivBio Holding
Given the investment horizon of 90 days Capricor Therapeutics is expected to generate 2.0 times less return on investment than VectivBio Holding. In addition to that, Capricor Therapeutics is 1.33 times more volatile than VectivBio Holding AG. It trades about 0.07 of its total potential returns per unit of risk. VectivBio Holding AG is currently generating about 0.19 per unit of volatility. If you would invest 753.00 in VectivBio Holding AG on November 2, 2024 and sell it today you would earn a total of 932.00 from holding VectivBio Holding AG or generate 123.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 20.85% |
| Values | Daily Returns |
Capricor Therapeutics vs. VectivBio Holding AG
Performance |
| Timeline |
| Capricor Therapeutics |
| VectivBio Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Capricor Therapeutics and VectivBio Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capricor Therapeutics and VectivBio Holding
The main advantage of trading using opposite Capricor Therapeutics and VectivBio Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capricor Therapeutics position performs unexpectedly, VectivBio Holding 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 VectivBio Holding will offset losses from the drop in VectivBio Holding's long position.| Capricor Therapeutics vs. Bio Path Holdings | Capricor Therapeutics vs. NextCure | Capricor Therapeutics vs. Pulmatrix | Capricor Therapeutics vs. Akari Therapeutics PLC |
| VectivBio Holding vs. Cns Pharmaceuticals | VectivBio Holding vs. ZyVersa Therapeutics | VectivBio Holding vs. Immix Biopharma | VectivBio Holding vs. Hepion Pharmaceuticals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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