Correlation Between Cingulate Warrants and Vaccinex

Can any of the company-specific risk be diversified away by investing in both Cingulate Warrants and Vaccinex 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 Cingulate Warrants and Vaccinex into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cingulate Warrants and Vaccinex, you can compare the effects of market volatilities on Cingulate Warrants and Vaccinex 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 Cingulate Warrants with a short position of Vaccinex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cingulate Warrants and Vaccinex.

Diversification Opportunities for Cingulate Warrants and Vaccinex

-0.04

Correlation Coefficient

Cingulate Warrants  Vaccinex

Good diversification

The 3 months correlation between Cingulate and Vaccinex is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate Warrants and Vaccinex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaccinex and Cingulate Warrants 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 Cingulate Warrants are associated (or correlated) with Vaccinex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaccinex has no effect on the direction of Cingulate Warrants i.e., Cingulate Warrants and Vaccinex go up and down completely randomly.

Pair Corralation between Cingulate Warrants and Vaccinex

Assuming the 90 days horizon Cingulate Warrants is expected to generate 1.67 times more return on investment than Vaccinex. However, Cingulate Warrants is 1.67 times more volatile than Vaccinex. It trades about 0.01 of its potential returns per unit of risk. Vaccinex is currently generating about -0.01 per unit of risk. If you would invest  6.75  in Cingulate Warrants on September 12, 2024 and sell it today you would lose (3.12) from holding Cingulate Warrants or give up 46.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Cingulate Warrants  vs.  Vaccinex

Cingulate Warrants

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cingulate Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak technical and fundamental indicators, Cingulate Warrants may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Vaccinex

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vaccinex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Vaccinex is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cingulate Warrants and Vaccinex

The main advantage of trading using opposite Cingulate Warrants and Vaccinex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate Warrants position performs unexpectedly, Vaccinex 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 Vaccinex will offset losses from the drop in Vaccinex's long position.

The idea behind Cingulate Warrants and Vaccinex pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.