Correlation Between Sarepta Therapeutics and Virpax Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Sarepta Therapeutics and Virpax Pharmaceuticals 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 Sarepta Therapeutics and Virpax Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarepta Therapeutics and Virpax Pharmaceuticals, you can compare the effects of market volatilities on Sarepta Therapeutics and Virpax Pharmaceuticals 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 Sarepta Therapeutics with a short position of Virpax Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarepta Therapeutics and Virpax Pharmaceuticals.
Diversification Opportunities for Sarepta Therapeutics and Virpax Pharmaceuticals
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sarepta and Virpax is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sarepta Therapeutics and Virpax Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virpax Pharmaceuticals and Sarepta 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 Sarepta Therapeutics are associated (or correlated) with Virpax Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virpax Pharmaceuticals has no effect on the direction of Sarepta Therapeutics i.e., Sarepta Therapeutics and Virpax Pharmaceuticals go up and down completely randomly.
Pair Corralation between Sarepta Therapeutics and Virpax Pharmaceuticals
Given the investment horizon of 90 days Sarepta Therapeutics is expected to generate 0.62 times more return on investment than Virpax Pharmaceuticals. However, Sarepta Therapeutics is 1.61 times less risky than Virpax Pharmaceuticals. It trades about 0.14 of its potential returns per unit of risk. Virpax Pharmaceuticals is currently generating about -0.48 per unit of risk. If you would invest 11,248 in Sarepta Therapeutics on September 14, 2024 and sell it today you would earn a total of 1,199 from holding Sarepta Therapeutics or generate 10.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sarepta Therapeutics vs. Virpax Pharmaceuticals
Performance |
| Timeline |
| Sarepta Therapeutics |
| Virpax Pharmaceuticals |
Sarepta Therapeutics and Virpax Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarepta Therapeutics and Virpax Pharmaceuticals
The main advantage of trading using opposite Sarepta Therapeutics and Virpax Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarepta Therapeutics position performs unexpectedly, Virpax Pharmaceuticals 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 Virpax Pharmaceuticals will offset losses from the drop in Virpax Pharmaceuticals' long position.| Sarepta Therapeutics vs. Puma Biotechnology | Sarepta Therapeutics vs. Iovance Biotherapeutics | Sarepta Therapeutics vs. Day One Biopharmaceuticals | Sarepta Therapeutics vs. Inozyme Pharma |
| Virpax Pharmaceuticals vs. Puma Biotechnology | Virpax Pharmaceuticals vs. Iovance Biotherapeutics | Virpax Pharmaceuticals vs. Day One Biopharmaceuticals | Virpax Pharmaceuticals vs. Inozyme Pharma |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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