Correlation Between Caribou Biosciences and Vaxart

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

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

Diversification Opportunities for Caribou Biosciences and Vaxart

-0.1

Correlation Coefficient

Caribou Biosciences  Vaxart

Good diversification

The 3 months correlation between Caribou and Vaxart is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Caribou Biosciences and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart Inc and Caribou Biosciences 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 Caribou Biosciences are associated (or correlated) with Vaxart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxart Inc has no effect on the direction of Caribou Biosciences i.e., Caribou Biosciences and Vaxart go up and down completely randomly.

Pair Corralation between Caribou Biosciences and Vaxart

Given the investment horizon of 90 days Caribou Biosciences is expected to under-perform the Vaxart. But the stock apears to be less risky and, when comparing its historical volatility, Caribou Biosciences is 1.05 times less risky than Vaxart. The stock trades about -0.09 of its potential returns per unit of risk. The Vaxart Inc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  117.00  in Vaxart Inc on October 2, 2024 and sell it today you would lose (48.00) from holding Vaxart Inc or give up 41.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Caribou Biosciences  vs.  Vaxart Inc

Caribou Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Caribou Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Caribou Biosciences is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Vaxart Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vaxart Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Caribou Biosciences and Vaxart

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

The idea behind Caribou Biosciences and Vaxart Inc 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.