Correlation Between Ocugen and Vaxart

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

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

Diversification Opportunities for Ocugen and Vaxart

0.74

Correlation Coefficient

Ocugen  Vaxart

Poor diversification

The 3 months correlation between Ocugen and Vaxart is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ocugen Inc and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart Inc and Ocugen 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 Ocugen Inc 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 Ocugen i.e., Ocugen and Vaxart go up and down completely randomly.

Pair Corralation between Ocugen and Vaxart

Given the investment horizon of 90 days Ocugen Inc is expected to generate 0.69 times more return on investment than Vaxart. However, Ocugen Inc is 1.44 times less risky than Vaxart. It trades about -0.03 of its potential returns per unit of risk. Vaxart Inc is currently generating about -0.08 per unit of risk. If you would invest  85.00  in Ocugen Inc on December 27, 2024 and sell it today you would lose (13.00) from holding Ocugen Inc or give up 15.29% of portfolio value over 90 days.

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

Ocugen Inc  vs.  Vaxart Inc

Ocugen Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ocugen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm 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 Ocugen and Vaxart

The main advantage of trading using opposite Ocugen and Vaxart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocugen 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 Ocugen Inc 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.