Correlation Between Ibio and VBI Vaccines
Can any of the company-specific risk be diversified away by investing in both Ibio and VBI Vaccines 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 Ibio and VBI Vaccines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ibio Inc and VBI Vaccines, you can compare the effects of market volatilities on Ibio and VBI Vaccines 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 Ibio with a short position of VBI Vaccines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ibio and VBI Vaccines.
Diversification Opportunities for Ibio and VBI Vaccines
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ibio and VBI is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ibio Inc and VBI Vaccines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VBI Vaccines and Ibio 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 Ibio Inc are associated (or correlated) with VBI Vaccines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VBI Vaccines has no effect on the direction of Ibio i.e., Ibio and VBI Vaccines go up and down completely randomly.
Pair Corralation between Ibio and VBI Vaccines
Given the investment horizon of 90 days Ibio Inc is expected to generate 0.82 times more return on investment than VBI Vaccines. However, Ibio Inc is 1.22 times less risky than VBI Vaccines. It trades about 0.07 of its potential returns per unit of risk. VBI Vaccines is currently generating about -0.11 per unit of risk. If you would invest 122.00 in Ibio Inc on September 1, 2024 and sell it today you would earn a total of 172.00 from holding Ibio Inc or generate 140.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.51% |
| Values | Daily Returns |
Ibio Inc vs. VBI Vaccines
Performance |
| Timeline |
| Ibio Inc |
| VBI Vaccines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ibio and VBI Vaccines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ibio and VBI Vaccines
The main advantage of trading using opposite Ibio and VBI Vaccines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ibio position performs unexpectedly, VBI Vaccines 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 VBI Vaccines will offset losses from the drop in VBI Vaccines' long position.| Ibio vs. Jaguar Animal Health | Ibio vs. GeoVax Labs | Ibio vs. Ocugen Inc | Ibio vs. Tonix Pharmaceuticals Holding |
| VBI Vaccines vs. Tonix Pharmaceuticals Holding | VBI Vaccines vs. Jaguar Animal Health | VBI Vaccines vs. Vaxart Inc | VBI Vaccines vs. Allogene 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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