Correlation Between Seres Therapeutics and Vaccinex
Can any of the company-specific risk be diversified away by investing in both Seres 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 Seres Therapeutics and Vaccinex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seres Therapeutics and Vaccinex, you can compare the effects of market volatilities on Seres 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 Seres Therapeutics with a short position of Vaccinex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seres Therapeutics and Vaccinex.
Diversification Opportunities for Seres Therapeutics and Vaccinex
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seres and Vaccinex is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Seres Therapeutics and Vaccinex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaccinex and Seres 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 Seres 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 Seres Therapeutics i.e., Seres Therapeutics and Vaccinex go up and down completely randomly.
Pair Corralation between Seres Therapeutics and Vaccinex
Given the investment horizon of 90 days Seres Therapeutics is expected to generate 1.38 times less return on investment than Vaccinex. In addition to that, Seres Therapeutics is 1.49 times more volatile than Vaccinex. It trades about 0.14 of its total potential returns per unit of risk. Vaccinex is currently generating about 0.29 per unit of volatility. If you would invest 279.00 in Vaccinex on September 1, 2024 and sell it today you would earn a total of 99.00 from holding Vaccinex or generate 35.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seres Therapeutics vs. Vaccinex
Performance |
| Timeline |
| Seres Therapeutics |
| Vaccinex |
Seres Therapeutics and Vaccinex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seres Therapeutics and Vaccinex
The main advantage of trading using opposite Seres Therapeutics and Vaccinex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seres 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.| Seres Therapeutics vs. Syros Pharmaceuticals | Seres Therapeutics vs. Iovance Biotherapeutics | Seres Therapeutics vs. Veracyte | Seres Therapeutics vs. Fate Therapeutics |
| Vaccinex vs. Tff Pharmaceuticals | Vaccinex vs. Eliem Therapeutics | Vaccinex vs. Inhibrx | Vaccinex vs. Enliven 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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