Correlation Between VectivBio Holding and Hepion Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both VectivBio Holding and Hepion Pharmaceuticals 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 Hepion Pharmaceuticals 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 Hepion Pharmaceuticals, you can compare the effects of market volatilities on VectivBio Holding and Hepion Pharmaceuticals 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 Hepion Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of VectivBio Holding and Hepion Pharmaceuticals.
Diversification Opportunities for VectivBio Holding and Hepion Pharmaceuticals
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VectivBio and Hepion is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding VectivBio Holding AG and Hepion Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hepion Pharmaceuticals 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 Hepion Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hepion Pharmaceuticals has no effect on the direction of VectivBio Holding i.e., VectivBio Holding and Hepion Pharmaceuticals go up and down completely randomly.
Pair Corralation between VectivBio Holding and Hepion Pharmaceuticals
If you would invest 66.00 in Hepion Pharmaceuticals on August 27, 2024 and sell it today you would earn a total of 2.00 from holding Hepion Pharmaceuticals or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
VectivBio Holding AG vs. Hepion Pharmaceuticals
Performance |
| Timeline |
| VectivBio Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hepion Pharmaceuticals |
VectivBio Holding and Hepion Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VectivBio Holding and Hepion Pharmaceuticals
The main advantage of trading using opposite VectivBio Holding and Hepion Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VectivBio Holding position performs unexpectedly, Hepion Pharmaceuticals 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 Hepion Pharmaceuticals will offset losses from the drop in Hepion Pharmaceuticals' long position.| VectivBio Holding vs. Cns Pharmaceuticals | VectivBio Holding vs. ZyVersa Therapeutics | VectivBio Holding vs. Immix Biopharma | VectivBio Holding vs. Hepion Pharmaceuticals |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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