Correlation Between Vaccinex and Catalyst Biosciences
Can any of the company-specific risk be diversified away by investing in both Vaccinex and Catalyst Biosciences 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 Catalyst Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaccinex and Catalyst Biosciences, you can compare the effects of market volatilities on Vaccinex and Catalyst Biosciences 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 Catalyst Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaccinex and Catalyst Biosciences.
Diversification Opportunities for Vaccinex and Catalyst Biosciences
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vaccinex and Catalyst is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Vaccinex and Catalyst Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Biosciences 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 Catalyst Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Biosciences has no effect on the direction of Vaccinex i.e., Vaccinex and Catalyst Biosciences go up and down completely randomly.
Pair Corralation between Vaccinex and Catalyst Biosciences
If you would invest 374.00 in Vaccinex on August 28, 2024 and sell it today you would lose (5.00) from holding Vaccinex or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Vaccinex vs. Catalyst Biosciences
Performance |
| Timeline |
| Vaccinex |
| Catalyst Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vaccinex and Catalyst Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaccinex and Catalyst Biosciences
The main advantage of trading using opposite Vaccinex and Catalyst Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaccinex position performs unexpectedly, Catalyst Biosciences 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 Catalyst Biosciences will offset losses from the drop in Catalyst Biosciences' long position.| Vaccinex vs. Eliem Therapeutics | Vaccinex vs. Scpharmaceuticals | Vaccinex vs. Milestone Pharmaceuticals | Vaccinex vs. Seres Therapeutics |
| Catalyst Biosciences vs. Akari Therapeutics PLC | Catalyst Biosciences vs. Benitec Biopharma Ltd | Catalyst Biosciences vs. Pulmatrix |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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