Correlation Between Vaccinex and Bioventus
Can any of the company-specific risk be diversified away by investing in both Vaccinex and Bioventus 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 Vaccinex and Bioventus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaccinex and Bioventus, you can compare the effects of market volatilities on Vaccinex and Bioventus 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 Vaccinex with a short position of Bioventus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaccinex and Bioventus.
Diversification Opportunities for Vaccinex and Bioventus
Excellent diversification
The 3 months correlation between Vaccinex and Bioventus is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Vaccinex and Bioventus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioventus and Vaccinex 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 Vaccinex are associated (or correlated) with Bioventus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioventus has no effect on the direction of Vaccinex i.e., Vaccinex and Bioventus go up and down completely randomly.
Pair Corralation between Vaccinex and Bioventus
Given the investment horizon of 90 days Vaccinex is expected to generate 2.02 times more return on investment than Bioventus. However, Vaccinex is 2.02 times more volatile than Bioventus. It trades about 0.02 of its potential returns per unit of risk. Bioventus is currently generating about -0.11 per unit of risk. If you would invest 374.00 in Vaccinex on August 27, 2024 and sell it today you would lose (18.00) from holding Vaccinex or give up 4.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vaccinex vs. Bioventus
Performance |
| Timeline |
| Vaccinex |
| Bioventus |
Vaccinex and Bioventus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaccinex and Bioventus
The main advantage of trading using opposite Vaccinex and Bioventus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaccinex position performs unexpectedly, Bioventus 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 Bioventus will offset losses from the drop in Bioventus' long position.| Vaccinex vs. Protara Therapeutics | Vaccinex vs. Monopar Therapeutics | Vaccinex vs. Surrozen | Vaccinex vs. Salarius Pharmaceuticals |
| Bioventus vs. Tivic Health Systems | Bioventus vs. Bluejay Diagnostics | Bioventus vs. Heart Test Laboratories | Bioventus vs. Nuwellis |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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