Correlation Between VectivBio Holding and BioLineRx
Can any of the company-specific risk be diversified away by investing in both VectivBio Holding and BioLineRx 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 VectivBio Holding and BioLineRx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VectivBio Holding AG and BioLineRx, you can compare the effects of market volatilities on VectivBio Holding and BioLineRx 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 VectivBio Holding with a short position of BioLineRx. Check out your portfolio center. Please also check ongoing floating volatility patterns of VectivBio Holding and BioLineRx.
Diversification Opportunities for VectivBio Holding and BioLineRx
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VectivBio and BioLineRx is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding VectivBio Holding AG and BioLineRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLineRx and VectivBio Holding 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 VectivBio Holding AG are associated (or correlated) with BioLineRx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLineRx has no effect on the direction of VectivBio Holding i.e., VectivBio Holding and BioLineRx go up and down completely randomly.
Pair Corralation between VectivBio Holding and BioLineRx
If you would invest 1,685 in VectivBio Holding AG on August 29, 2024 and sell it today you would earn a total of 0.00 from holding VectivBio Holding AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
VectivBio Holding AG vs. BioLineRx
Performance |
| Timeline |
| VectivBio Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BioLineRx |
VectivBio Holding and BioLineRx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VectivBio Holding and BioLineRx
The main advantage of trading using opposite VectivBio Holding and BioLineRx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VectivBio Holding position performs unexpectedly, BioLineRx 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 BioLineRx will offset losses from the drop in BioLineRx's long position.| VectivBio Holding vs. Cns Pharmaceuticals | VectivBio Holding vs. ZyVersa Therapeutics | VectivBio Holding vs. Immix Biopharma | VectivBio Holding vs. Hepion Pharmaceuticals |
| BioLineRx vs. Ardelyx | BioLineRx vs. Lexicon Pharmaceuticals | BioLineRx vs. Seres Therapeutics | BioLineRx vs. Immunitybio |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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