Correlation Between Moderna and Vaxart
Can any of the company-specific risk be diversified away by investing in both Moderna and Vaxart 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 Moderna and Vaxart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moderna and Vaxart Inc, you can compare the effects of market volatilities on Moderna and Vaxart 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 Moderna with a short position of Vaxart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderna and Vaxart.
Diversification Opportunities for Moderna and Vaxart
Almost no diversification
The 3 months correlation between Moderna and Vaxart is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Moderna and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart Inc and Moderna 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 Moderna are associated (or correlated) with Vaxart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxart Inc has no effect on the direction of Moderna i.e., Moderna and Vaxart go up and down completely randomly.
Pair Corralation between Moderna and Vaxart
Given the investment horizon of 90 days Moderna is expected to generate 1.24 times more return on investment than Vaxart. However, Moderna is 1.24 times more volatile than Vaxart Inc. It trades about -0.21 of its potential returns per unit of risk. Vaxart Inc is currently generating about -0.29 per unit of risk. If you would invest 5,436 in Moderna on September 1, 2024 and sell it today you would lose (1,130) from holding Moderna or give up 20.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moderna vs. Vaxart Inc
Performance |
| Timeline |
| Moderna |
| Vaxart Inc |
Moderna and Vaxart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moderna and Vaxart
The main advantage of trading using opposite Moderna and Vaxart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moderna position performs unexpectedly, Vaxart 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 Vaxart will offset losses from the drop in Vaxart's long position.| Moderna vs. CureVac NV | Moderna vs. Novavax | Moderna vs. Ocean Biomedical | Moderna vs. Enveric Biosciences |
| Vaxart vs. Tff Pharmaceuticals | Vaxart vs. Eliem Therapeutics | Vaxart vs. Inhibrx | Vaxart 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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