Correlation Between VBI Vaccines and Acasti Pharma
Can any of the company-specific risk be diversified away by investing in both VBI Vaccines and Acasti Pharma 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 VBI Vaccines and Acasti Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VBI Vaccines and Acasti Pharma, you can compare the effects of market volatilities on VBI Vaccines and Acasti Pharma 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 VBI Vaccines with a short position of Acasti Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of VBI Vaccines and Acasti Pharma.
Diversification Opportunities for VBI Vaccines and Acasti Pharma
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VBI and Acasti is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding VBI Vaccines and Acasti Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acasti Pharma and VBI Vaccines 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 VBI Vaccines are associated (or correlated) with Acasti Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acasti Pharma has no effect on the direction of VBI Vaccines i.e., VBI Vaccines and Acasti Pharma go up and down completely randomly.
Pair Corralation between VBI Vaccines and Acasti Pharma
Given the investment horizon of 90 days VBI Vaccines is expected to under-perform the Acasti Pharma. In addition to that, VBI Vaccines is 2.52 times more volatile than Acasti Pharma. It trades about -0.09 of its total potential returns per unit of risk. Acasti Pharma is currently generating about 0.04 per unit of volatility. If you would invest 213.00 in Acasti Pharma on August 29, 2024 and sell it today you would earn a total of 124.00 from holding Acasti Pharma or generate 58.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.4% |
| Values | Daily Returns |
VBI Vaccines vs. Acasti Pharma
Performance |
| Timeline |
| VBI Vaccines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Acasti Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
VBI Vaccines and Acasti Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VBI Vaccines and Acasti Pharma
The main advantage of trading using opposite VBI Vaccines and Acasti Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VBI Vaccines position performs unexpectedly, Acasti Pharma 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 Acasti Pharma will offset losses from the drop in Acasti Pharma's long position.| VBI Vaccines vs. Tonix Pharmaceuticals Holding | VBI Vaccines vs. Jaguar Animal Health | VBI Vaccines vs. Vaxart Inc | VBI Vaccines vs. Allogene Therapeutics |
| Acasti Pharma vs. Tonix Pharmaceuticals Holding | Acasti Pharma vs. Jaguar Animal Health | Acasti Pharma vs. Ibio Inc | Acasti Pharma vs. Akari Therapeutics PLC |
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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