Correlation Between Vaccinex and OptiNose
Can any of the company-specific risk be diversified away by investing in both Vaccinex and OptiNose 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 OptiNose into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaccinex and OptiNose, you can compare the effects of market volatilities on Vaccinex and OptiNose 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 OptiNose. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaccinex and OptiNose.
Diversification Opportunities for Vaccinex and OptiNose
Poor diversification
The 3 months correlation between Vaccinex and OptiNose is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Vaccinex and OptiNose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiNose 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 OptiNose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptiNose has no effect on the direction of Vaccinex i.e., Vaccinex and OptiNose go up and down completely randomly.
Pair Corralation between Vaccinex and OptiNose
Given the investment horizon of 90 days Vaccinex is expected to generate 1.12 times more return on investment than OptiNose. However, Vaccinex is 1.12 times more volatile than OptiNose. It trades about 0.17 of its potential returns per unit of risk. OptiNose is currently generating about -0.18 per unit of risk. If you would invest 273.00 in Vaccinex on August 24, 2024 and sell it today you would earn a total of 89.00 from holding Vaccinex or generate 32.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vaccinex vs. OptiNose
Performance |
| Timeline |
| Vaccinex |
| OptiNose |
Vaccinex and OptiNose Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaccinex and OptiNose
The main advantage of trading using opposite Vaccinex and OptiNose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaccinex position performs unexpectedly, OptiNose 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 OptiNose will offset losses from the drop in OptiNose's long position.| Vaccinex vs. Lyra Therapeutics | Vaccinex vs. Hookipa Pharma | Vaccinex vs. Cingulate Warrants | Vaccinex vs. SAB Biotherapeutics |
| OptiNose vs. Collegium Pharmaceutical | OptiNose vs. Phibro Animal Health | OptiNose vs. ANI Pharmaceuticals | OptiNose vs. Procaps Group SA |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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