Correlation Between Virax Biolabs and Moderna
Can any of the company-specific risk be diversified away by investing in both Virax Biolabs and Moderna 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 Virax Biolabs and Moderna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virax Biolabs Group and Moderna, you can compare the effects of market volatilities on Virax Biolabs and Moderna 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 Virax Biolabs with a short position of Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virax Biolabs and Moderna.
Diversification Opportunities for Virax Biolabs and Moderna
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Virax and Moderna is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Virax Biolabs Group and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna and Virax Biolabs 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 Virax Biolabs Group are associated (or correlated) with Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of Virax Biolabs i.e., Virax Biolabs and Moderna go up and down completely randomly.
Pair Corralation between Virax Biolabs and Moderna
Given the investment horizon of 90 days Virax Biolabs Group is expected to generate 1.55 times more return on investment than Moderna. However, Virax Biolabs is 1.55 times more volatile than Moderna. It trades about -0.04 of its potential returns per unit of risk. Moderna is currently generating about -0.3 per unit of risk. If you would invest 221.00 in Virax Biolabs Group on August 27, 2024 and sell it today you would lose (20.00) from holding Virax Biolabs Group or give up 9.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virax Biolabs Group vs. Moderna
Performance |
| Timeline |
| Virax Biolabs Group |
| Moderna |
Virax Biolabs and Moderna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virax Biolabs and Moderna
The main advantage of trading using opposite Virax Biolabs and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virax Biolabs position performs unexpectedly, Moderna 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 Moderna will offset losses from the drop in Moderna's long position.| Virax Biolabs vs. Eliem Therapeutics | Virax Biolabs vs. HCW Biologics | Virax Biolabs vs. Scpharmaceuticals | Virax Biolabs vs. Milestone Pharmaceuticals |
| Moderna vs. CureVac NV | Moderna vs. Novavax | Moderna vs. Ocean Biomedical | Moderna vs. Enveric Biosciences |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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