Correlation Between First Wave and Vaccinex
Can any of the company-specific risk be diversified away by investing in both First Wave 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 First Wave and Vaccinex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Wave BioPharma and Vaccinex, you can compare the effects of market volatilities on First Wave 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 First Wave with a short position of Vaccinex. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Wave and Vaccinex.
Diversification Opportunities for First Wave and Vaccinex
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Vaccinex is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding First Wave BioPharma and Vaccinex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaccinex and First Wave 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 First Wave BioPharma 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 First Wave i.e., First Wave and Vaccinex go up and down completely randomly.
Pair Corralation between First Wave and Vaccinex
If you would invest 374.00 in Vaccinex on August 28, 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 | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
First Wave BioPharma vs. Vaccinex
Performance |
| Timeline |
| First Wave BioPharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vaccinex |
First Wave and Vaccinex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Wave and Vaccinex
The main advantage of trading using opposite First Wave and Vaccinex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Wave 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.| First Wave vs. Quoin Pharmaceuticals Ltd | First Wave vs. Revelation Biosciences | First Wave vs. Dermata Therapeutics | First Wave vs. LMF Acquisition Opportunities |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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