Correlation Between Equillium and Vivani Medical

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

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

Diversification Opportunities for Equillium and Vivani Medical

-0.23

Correlation Coefficient

Equillium  Vivani Medical

Very good diversification

The 3 months correlation between Equillium and Vivani is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and Vivani Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivani Medical and Equillium 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 Equillium are associated (or correlated) with Vivani Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivani Medical has no effect on the direction of Equillium i.e., Equillium and Vivani Medical go up and down completely randomly.

Pair Corralation between Equillium and Vivani Medical

Allowing for the 90-day total investment horizon Equillium is expected to under-perform the Vivani Medical. In addition to that, Equillium is 4.15 times more volatile than Vivani Medical. It trades about -0.08 of its total potential returns per unit of risk. Vivani Medical is currently generating about -0.05 per unit of volatility. If you would invest  118.00  in Vivani Medical on December 28, 2024 and sell it today you would lose (8.00) from holding Vivani Medical or give up 6.78% of portfolio value over 90 days.

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

Equillium  vs.  Vivani Medical

Equillium

Risk-Adjusted Performance

Very Weak

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

Vivani Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vivani Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Vivani Medical is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Equillium and Vivani Medical

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

The idea behind Equillium and Vivani Medical 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.