Correlation Between Dynavax Technologies and Catalent

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

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

Diversification Opportunities for Dynavax Technologies and Catalent

0.0

Correlation Coefficient

Dynavax Technologies  Catalent

Pay attention - limited upside

The 3 months correlation between Dynavax and Catalent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dynavax Technologies and Catalent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalent and Dynavax Technologies 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 Dynavax Technologies are associated (or correlated) with Catalent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalent has no effect on the direction of Dynavax Technologies i.e., Dynavax Technologies and Catalent go up and down completely randomly.

Pair Corralation between Dynavax Technologies and Catalent

If you would invest  1,283  in Dynavax Technologies on December 29, 2024 and sell it today you would earn a total of  85.00  from holding Dynavax Technologies or generate 6.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Dynavax Technologies  vs.  Catalent

Dynavax Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dynavax Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Dynavax Technologies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Catalent

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Dynavax Technologies and Catalent

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

The idea behind Dynavax Technologies and Catalent 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.

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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.