Correlation Between Neximmune and Evaxion Biotech
Can any of the company-specific risk be diversified away by investing in both Neximmune and Evaxion Biotech 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 Neximmune and Evaxion Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neximmune and Evaxion Biotech AS, you can compare the effects of market volatilities on Neximmune and Evaxion Biotech 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 Neximmune with a short position of Evaxion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neximmune and Evaxion Biotech.
Diversification Opportunities for Neximmune and Evaxion Biotech
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neximmune and Evaxion is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Neximmune and Evaxion Biotech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaxion Biotech AS and Neximmune 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 Neximmune are associated (or correlated) with Evaxion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaxion Biotech AS has no effect on the direction of Neximmune i.e., Neximmune and Evaxion Biotech go up and down completely randomly.
Pair Corralation between Neximmune and Evaxion Biotech
Given the investment horizon of 90 days Neximmune is expected to generate 1.79 times more return on investment than Evaxion Biotech. However, Neximmune is 1.79 times more volatile than Evaxion Biotech AS. It trades about 0.03 of its potential returns per unit of risk. Evaxion Biotech AS is currently generating about -0.02 per unit of risk. If you would invest 848.00 in Neximmune on September 2, 2024 and sell it today you would lose (605.00) from holding Neximmune or give up 71.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.65% |
| Values | Daily Returns |
Neximmune vs. Evaxion Biotech AS
Performance |
| Timeline |
| Neximmune |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Evaxion Biotech AS |
Neximmune and Evaxion Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neximmune and Evaxion Biotech
The main advantage of trading using opposite Neximmune and Evaxion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neximmune position performs unexpectedly, Evaxion Biotech 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 Evaxion Biotech will offset losses from the drop in Evaxion Biotech's long position.| Neximmune vs. ZyVersa Therapeutics | Neximmune vs. Palisade Bio | Neximmune vs. Unicycive Therapeutics | Neximmune vs. Immix Biopharma |
| Evaxion Biotech vs. Tff Pharmaceuticals | Evaxion Biotech vs. Eliem Therapeutics | Evaxion Biotech vs. Inhibrx | Evaxion Biotech 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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