Correlation Between ContraFect Corp and Virax Biolabs
Can any of the company-specific risk be diversified away by investing in both ContraFect Corp and Virax Biolabs 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 ContraFect Corp and Virax Biolabs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ContraFect Corp and Virax Biolabs Group, you can compare the effects of market volatilities on ContraFect Corp and Virax Biolabs 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 ContraFect Corp with a short position of Virax Biolabs. Check out your portfolio center. Please also check ongoing floating volatility patterns of ContraFect Corp and Virax Biolabs.
Diversification Opportunities for ContraFect Corp and Virax Biolabs
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ContraFect and Virax is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding ContraFect Corp and Virax Biolabs Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virax Biolabs Group and ContraFect Corp 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 ContraFect Corp are associated (or correlated) with Virax Biolabs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virax Biolabs Group has no effect on the direction of ContraFect Corp i.e., ContraFect Corp and Virax Biolabs go up and down completely randomly.
Pair Corralation between ContraFect Corp and Virax Biolabs
If you would invest 204.00 in Virax Biolabs Group on September 3, 2024 and sell it today you would lose (7.00) from holding Virax Biolabs Group or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
ContraFect Corp vs. Virax Biolabs Group
Performance |
| Timeline |
| ContraFect Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Virax Biolabs Group |
ContraFect Corp and Virax Biolabs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ContraFect Corp and Virax Biolabs
The main advantage of trading using opposite ContraFect Corp and Virax Biolabs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ContraFect Corp position performs unexpectedly, Virax Biolabs 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 Virax Biolabs will offset losses from the drop in Virax Biolabs' long position.| ContraFect Corp vs. Palisade Bio | ContraFect Corp vs. Allarity Therapeutics | ContraFect Corp vs. Cns Pharmaceuticals | ContraFect Corp vs. Windtree Therapeutics |
| Virax Biolabs vs. DiaMedica Therapeutics | Virax Biolabs vs. Lyra Therapeutics | Virax Biolabs vs. Centessa Pharmaceuticals PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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