Correlation Between Larimar Therapeutics and Vaxart

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

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

Diversification Opportunities for Larimar Therapeutics and Vaxart

0.28

Correlation Coefficient

Larimar Therapeutics  Vaxart

Modest diversification

The 3 months correlation between Larimar and Vaxart is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Larimar Therapeutics and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart Inc and Larimar Therapeutics 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 Larimar Therapeutics 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 Larimar Therapeutics i.e., Larimar Therapeutics and Vaxart go up and down completely randomly.

Pair Corralation between Larimar Therapeutics and Vaxart

Given the investment horizon of 90 days Larimar Therapeutics is expected to generate 1.28 times more return on investment than Vaxart. However, Larimar Therapeutics is 1.28 times more volatile than Vaxart Inc. It trades about 0.0 of its potential returns per unit of risk. Vaxart Inc is currently generating about -0.17 per unit of risk. If you would invest  669.00  in Larimar Therapeutics on September 16, 2024 and sell it today you would lose (52.00) from holding Larimar Therapeutics or give up 7.77% of portfolio value over 90 days.

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

Larimar Therapeutics  vs.  Vaxart Inc

Larimar Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Larimar Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Larimar Therapeutics is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the 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 Larimar Therapeutics and Vaxart

The main advantage of trading using opposite Larimar Therapeutics and Vaxart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Larimar Therapeutics 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 Larimar Therapeutics 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.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..