Correlation Between Hepion Pharmaceuticals and Vaxart

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

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

Diversification Opportunities for Hepion Pharmaceuticals and Vaxart

0.61

Correlation Coefficient

Hepion Pharmaceuticals  Vaxart

Poor diversification

The 3 months correlation between Hepion and Vaxart is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hepion Pharmaceuticals and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart Inc and Hepion 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 Hepion 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 Hepion Pharmaceuticals i.e., Hepion Pharmaceuticals and Vaxart go up and down completely randomly.

Pair Corralation between Hepion Pharmaceuticals and Vaxart

Given the investment horizon of 90 days Hepion Pharmaceuticals is expected to under-perform the Vaxart. In addition to that, Hepion Pharmaceuticals is 2.38 times more volatile than Vaxart Inc. It trades about -0.26 of its total potential returns per unit of risk. Vaxart Inc is currently generating about -0.06 per unit of volatility. If you would invest  69.00  in Vaxart Inc on December 29, 2024 and sell it today you would lose (23.00) from holding Vaxart Inc or give up 33.33% of portfolio value over 90 days.

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

Hepion Pharmaceuticals  vs.  Vaxart Inc

Hepion Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hepion Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Vaxart Inc

Risk-Adjusted Performance

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 April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Hepion Pharmaceuticals and Vaxart

The main advantage of trading using opposite Hepion Pharmaceuticals and Vaxart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hepion 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 Hepion 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.