Correlation Between Viatris and Histogen
Can any of the company-specific risk be diversified away by investing in both Viatris and Histogen 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 Viatris and Histogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viatris and Histogen, you can compare the effects of market volatilities on Viatris and Histogen 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 Viatris with a short position of Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viatris and Histogen.
Diversification Opportunities for Viatris and Histogen
Excellent diversification
The 3 months correlation between Viatris and Histogen is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Viatris and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen and Viatris 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 Viatris are associated (or correlated) with Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of Viatris i.e., Viatris and Histogen go up and down completely randomly.
Pair Corralation between Viatris and Histogen
Given the investment horizon of 90 days Viatris is expected to generate 0.16 times more return on investment than Histogen. However, Viatris is 6.24 times less risky than Histogen. It trades about 0.19 of its potential returns per unit of risk. Histogen is currently generating about -0.24 per unit of risk. If you would invest 1,160 in Viatris on September 1, 2024 and sell it today you would earn a total of 149.00 from holding Viatris or generate 12.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viatris vs. Histogen
Performance |
| Timeline |
| Viatris |
| Histogen |
Viatris and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viatris and Histogen
The main advantage of trading using opposite Viatris and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viatris position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| Viatris vs. Crinetics Pharmaceuticals | Viatris vs. Enanta Pharmaceuticals | Viatris vs. Amicus Therapeutics | Viatris vs. Connect Biopharma Holdings |
| Histogen vs. Virax Biolabs Group | Histogen vs. Altamira Therapeutics | Histogen vs. Aileron Therapeutics | Histogen vs. Artelo 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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