Correlation Between Cyclacel Pharmaceuticals and Vaxart

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

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

Diversification Opportunities for Cyclacel Pharmaceuticals and Vaxart

0.63

Correlation Coefficient

Cyclacel Pharmaceuticals  Vaxart

Poor diversification

The 3 months correlation between Cyclacel and Vaxart is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cyclacel Pharmaceuticals and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart Inc and Cyclacel 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 Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals i.e., Cyclacel Pharmaceuticals and Vaxart go up and down completely randomly.

Pair Corralation between Cyclacel Pharmaceuticals and Vaxart

Assuming the 90 days horizon Cyclacel Pharmaceuticals is expected to generate 1.25 times more return on investment than Vaxart. However, Cyclacel Pharmaceuticals is 1.25 times more volatile than Vaxart Inc. It trades about 0.02 of its potential returns per unit of risk. Vaxart Inc is currently generating about 0.02 per unit of risk. If you would invest  1,027  in Cyclacel Pharmaceuticals on September 16, 2024 and sell it today you would lose (447.00) from holding Cyclacel Pharmaceuticals or give up 43.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.4%
Values	Daily Returns

Cyclacel Pharmaceuticals  vs.  Vaxart Inc

Cyclacel Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cyclacel Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Preferred Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail 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 inconsistent 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 Cyclacel Pharmaceuticals and Vaxart

The main advantage of trading using opposite Cyclacel Pharmaceuticals and Vaxart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.