Correlation Between CohBar and Vir Biotechnology
Can any of the company-specific risk be diversified away by investing in both CohBar and Vir Biotechnology 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 CohBar and Vir Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CohBar Inc and Vir Biotechnology, you can compare the effects of market volatilities on CohBar and Vir Biotechnology 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 CohBar with a short position of Vir Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CohBar and Vir Biotechnology.
Diversification Opportunities for CohBar and Vir Biotechnology
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between CohBar and Vir is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding CohBar Inc and Vir Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vir Biotechnology and CohBar 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 CohBar Inc are associated (or correlated) with Vir Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vir Biotechnology has no effect on the direction of CohBar i.e., CohBar and Vir Biotechnology go up and down completely randomly.
Pair Corralation between CohBar and Vir Biotechnology
If you would invest 775.00 in Vir Biotechnology on August 28, 2024 and sell it today you would lose (31.00) from holding Vir Biotechnology or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
CohBar Inc vs. Vir Biotechnology
Performance |
| Timeline |
| CohBar Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vir Biotechnology |
CohBar and Vir Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CohBar and Vir Biotechnology
The main advantage of trading using opposite CohBar and Vir Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CohBar position performs unexpectedly, Vir Biotechnology 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 Vir Biotechnology will offset losses from the drop in Vir Biotechnology's long position.| CohBar vs. Enveric Biosciences | CohBar vs. Elevation Oncology | CohBar vs. Hepion Pharmaceuticals | CohBar vs. Zura Bio Limited |
| Vir Biotechnology vs. CureVac NV | Vir Biotechnology vs. Krystal Biotech | Vir Biotechnology vs. Propanc Biopharma | Vir Biotechnology vs. Blueprint Medicines Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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