Correlation Between Virpax Pharmaceuticals and FibroGen
Can any of the company-specific risk be diversified away by investing in both Virpax Pharmaceuticals and FibroGen 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 Virpax Pharmaceuticals and FibroGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virpax Pharmaceuticals and FibroGen, you can compare the effects of market volatilities on Virpax Pharmaceuticals and FibroGen 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 Virpax Pharmaceuticals with a short position of FibroGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virpax Pharmaceuticals and FibroGen.
Diversification Opportunities for Virpax Pharmaceuticals and FibroGen
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virpax and FibroGen is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Virpax Pharmaceuticals and FibroGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FibroGen and Virpax Pharmaceuticals 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 Virpax Pharmaceuticals are associated (or correlated) with FibroGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FibroGen has no effect on the direction of Virpax Pharmaceuticals i.e., Virpax Pharmaceuticals and FibroGen go up and down completely randomly.
Pair Corralation between Virpax Pharmaceuticals and FibroGen
Given the investment horizon of 90 days Virpax Pharmaceuticals is expected to under-perform the FibroGen. But the stock apears to be less risky and, when comparing its historical volatility, Virpax Pharmaceuticals is 1.22 times less risky than FibroGen. The stock trades about -0.16 of its potential returns per unit of risk. The FibroGen is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 53.00 in FibroGen on November 2, 2024 and sell it today you would lose (3.00) from holding FibroGen or give up 5.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virpax Pharmaceuticals vs. FibroGen
Performance |
| Timeline |
| Virpax Pharmaceuticals |
| FibroGen |
Virpax Pharmaceuticals and FibroGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virpax Pharmaceuticals and FibroGen
The main advantage of trading using opposite Virpax Pharmaceuticals and FibroGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virpax Pharmaceuticals position performs unexpectedly, FibroGen 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 FibroGen will offset losses from the drop in FibroGen's long position.| Virpax Pharmaceuticals vs. Revelation Biosciences | Virpax Pharmaceuticals vs. Palisade Bio | Virpax Pharmaceuticals vs. Virax Biolabs Group | Virpax Pharmaceuticals vs. Quoin Pharmaceuticals Ltd |
| FibroGen vs. Ardelyx | FibroGen vs. Zura Bio Limited | FibroGen vs. Hepion Pharmaceuticals | FibroGen vs. Verastem |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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