Correlation Between Fortress Biotech and Vaccinex
Can any of the company-specific risk be diversified away by investing in both Fortress Biotech and Vaccinex 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 Fortress Biotech and Vaccinex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Biotech and Vaccinex, you can compare the effects of market volatilities on Fortress Biotech and Vaccinex 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 Fortress Biotech with a short position of Vaccinex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and Vaccinex.
Diversification Opportunities for Fortress Biotech and Vaccinex
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fortress and Vaccinex is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech and Vaccinex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaccinex and Fortress Biotech 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 Fortress Biotech are associated (or correlated) with Vaccinex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaccinex has no effect on the direction of Fortress Biotech i.e., Fortress Biotech and Vaccinex go up and down completely randomly.
Pair Corralation between Fortress Biotech and Vaccinex
Given the investment horizon of 90 days Fortress Biotech is expected to under-perform the Vaccinex. But the stock apears to be less risky and, when comparing its historical volatility, Fortress Biotech is 1.97 times less risky than Vaccinex. The stock trades about -0.07 of its potential returns per unit of risk. The Vaccinex is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 374.00 in Vaccinex on August 29, 2024 and sell it today you would lose (5.00) from holding Vaccinex or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortress Biotech vs. Vaccinex
Performance |
| Timeline |
| Fortress Biotech |
| Vaccinex |
Fortress Biotech and Vaccinex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Biotech and Vaccinex
The main advantage of trading using opposite Fortress Biotech and Vaccinex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech position performs unexpectedly, Vaccinex 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 Vaccinex will offset losses from the drop in Vaccinex's long position.| Fortress Biotech vs. Mustang Bio | Fortress Biotech vs. Achilles Therapeutics PLC | Fortress Biotech vs. Aptose Biosciences | Fortress Biotech vs. Fortress Biotech Pref |
| Vaccinex vs. Eliem Therapeutics | Vaccinex vs. Scpharmaceuticals | Vaccinex vs. Milestone Pharmaceuticals | Vaccinex vs. Seres Therapeutics |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |