Correlation Between Vaxart and Novo Nordisk
Can any of the company-specific risk be diversified away by investing in both Vaxart and Novo Nordisk 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 Vaxart and Novo Nordisk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaxart Inc and Novo Nordisk AS, you can compare the effects of market volatilities on Vaxart and Novo Nordisk 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 Vaxart with a short position of Novo Nordisk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaxart and Novo Nordisk.
Diversification Opportunities for Vaxart and Novo Nordisk
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vaxart and Novo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Vaxart Inc and Novo Nordisk AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novo Nordisk AS and Vaxart 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 Vaxart Inc are associated (or correlated) with Novo Nordisk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novo Nordisk AS has no effect on the direction of Vaxart i.e., Vaxart and Novo Nordisk go up and down completely randomly.
Pair Corralation between Vaxart and Novo Nordisk
Given the investment horizon of 90 days Vaxart Inc is expected to under-perform the Novo Nordisk. In addition to that, Vaxart is 2.15 times more volatile than Novo Nordisk AS. It trades about -0.28 of its total potential returns per unit of risk. Novo Nordisk AS is currently generating about -0.28 per unit of volatility. If you would invest 11,574 in Novo Nordisk AS on August 24, 2024 and sell it today you would lose (1,311) from holding Novo Nordisk AS or give up 11.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vaxart Inc vs. Novo Nordisk AS
Performance |
| Timeline |
| Vaxart Inc |
| Novo Nordisk AS |
Vaxart and Novo Nordisk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaxart and Novo Nordisk
The main advantage of trading using opposite Vaxart and Novo Nordisk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaxart position performs unexpectedly, Novo Nordisk 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 Novo Nordisk will offset losses from the drop in Novo Nordisk's long position.| Vaxart vs. ZyVersa Therapeutics | Vaxart vs. Sonnet Biotherapeutics Holdings | Vaxart vs. Zura Bio Limited | Vaxart vs. Phio Pharmaceuticals Corp |
| Novo Nordisk vs. Regeneron Pharmaceuticals | Novo Nordisk vs. Crispr Therapeutics AG | Novo Nordisk vs. Sarepta Therapeutics | Novo Nordisk vs. Intellia Therapeutics |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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