Correlation Between VBI Vaccines and Ibio
Can any of the company-specific risk be diversified away by investing in both VBI Vaccines and Ibio 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 Ibio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VBI Vaccines and Ibio Inc, you can compare the effects of market volatilities on VBI Vaccines and Ibio 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 Ibio. Check out your portfolio center. Please also check ongoing floating volatility patterns of VBI Vaccines and Ibio.
Diversification Opportunities for VBI Vaccines and Ibio
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between VBI and Ibio is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding VBI Vaccines and Ibio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibio Inc 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 Ibio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibio Inc has no effect on the direction of VBI Vaccines i.e., VBI Vaccines and Ibio go up and down completely randomly.
Pair Corralation between VBI Vaccines and Ibio
Given the investment horizon of 90 days VBI Vaccines is expected to under-perform the Ibio. But the stock apears to be less risky and, when comparing its historical volatility, VBI Vaccines is 1.04 times less risky than Ibio. The stock trades about -0.09 of its potential returns per unit of risk. The Ibio Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,240 in Ibio Inc on August 29, 2024 and sell it today you would lose (977.00) from holding Ibio Inc or give up 78.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 84.48% |
| Values | Daily Returns |
VBI Vaccines vs. Ibio Inc
Performance |
| Timeline |
| VBI Vaccines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ibio Inc |
VBI Vaccines and Ibio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VBI Vaccines and Ibio
The main advantage of trading using opposite VBI Vaccines and Ibio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VBI Vaccines position performs unexpectedly, Ibio 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 Ibio will offset losses from the drop in Ibio'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 |
| Ibio vs. Jaguar Animal Health | Ibio vs. GeoVax Labs | Ibio vs. Ocugen Inc | Ibio vs. Tonix Pharmaceuticals Holding |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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