Correlation Between Lifevantage and Chimerix
Can any of the company-specific risk be diversified away by investing in both Lifevantage and Chimerix 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 Lifevantage and Chimerix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifevantage and Chimerix, you can compare the effects of market volatilities on Lifevantage and Chimerix 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 Lifevantage with a short position of Chimerix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifevantage and Chimerix.
Diversification Opportunities for Lifevantage and Chimerix
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lifevantage and Chimerix is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lifevantage and Chimerix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimerix and Lifevantage 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 Lifevantage are associated (or correlated) with Chimerix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimerix has no effect on the direction of Lifevantage i.e., Lifevantage and Chimerix go up and down completely randomly.
Pair Corralation between Lifevantage and Chimerix
Given the investment horizon of 90 days Lifevantage is expected to generate 1.31 times more return on investment than Chimerix. However, Lifevantage is 1.31 times more volatile than Chimerix. It trades about 0.08 of its potential returns per unit of risk. Chimerix is currently generating about 0.01 per unit of risk. If you would invest 704.00 in Lifevantage on September 4, 2024 and sell it today you would earn a total of 753.00 from holding Lifevantage or generate 106.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Lifevantage vs. Chimerix
Performance |
| Timeline |
| Lifevantage |
| Chimerix |
Lifevantage and Chimerix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifevantage and Chimerix
The main advantage of trading using opposite Lifevantage and Chimerix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifevantage position performs unexpectedly, Chimerix 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 Chimerix will offset losses from the drop in Chimerix's long position.| Lifevantage vs. Seneca Foods Corp | Lifevantage vs. Central Garden Pet | Lifevantage vs. Central Garden Pet | Lifevantage vs. Lifeway Foods |
| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil Bio |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |