Correlation Between Galera Therapeutics and Vaccinex
Can any of the company-specific risk be diversified away by investing in both Galera Therapeutics 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 Galera Therapeutics and Vaccinex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galera Therapeutics and Vaccinex, you can compare the effects of market volatilities on Galera Therapeutics 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 Galera Therapeutics with a short position of Vaccinex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galera Therapeutics and Vaccinex.
Diversification Opportunities for Galera Therapeutics and Vaccinex
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Galera and Vaccinex is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Galera Therapeutics and Vaccinex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaccinex and Galera 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 Galera Therapeutics 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 Galera Therapeutics i.e., Galera Therapeutics and Vaccinex go up and down completely randomly.
Pair Corralation between Galera Therapeutics and Vaccinex
Given the investment horizon of 90 days Galera Therapeutics is expected to generate 0.6 times more return on investment than Vaccinex. However, Galera Therapeutics is 1.66 times less risky than Vaccinex. It trades about 0.05 of its potential returns per unit of risk. Vaccinex is currently generating about -0.08 per unit of risk. If you would invest 229.00 in Galera Therapeutics on November 2, 2024 and sell it today you would earn a total of 29.00 from holding Galera Therapeutics or generate 12.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 23.68% |
| Values | Daily Returns |
Galera Therapeutics vs. Vaccinex
Performance |
| Timeline |
| Galera Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vaccinex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Galera Therapeutics and Vaccinex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galera Therapeutics and Vaccinex
The main advantage of trading using opposite Galera Therapeutics and Vaccinex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galera Therapeutics 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.| Galera Therapeutics vs. Mereo BioPharma Group | Galera Therapeutics vs. Terns Pharmaceuticals | Galera Therapeutics vs. PDS Biotechnology Corp | Galera Therapeutics vs. Inozyme Pharma |
| Vaccinex vs. Protara Therapeutics | Vaccinex vs. Monopar Therapeutics | Vaccinex vs. Surrozen | Vaccinex vs. Salarius 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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