Correlation Between PepGen and Vivani Medical

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

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

Diversification Opportunities for PepGen and Vivani Medical

0.27

Correlation Coefficient

PepGen  Vivani Medical

Modest diversification

The 3 months correlation between PepGen and Vivani is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PepGen and Vivani Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivani Medical and PepGen 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 PepGen 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 PepGen i.e., PepGen and Vivani Medical go up and down completely randomly.

Pair Corralation between PepGen and Vivani Medical

Given the investment horizon of 90 days PepGen is expected to under-perform the Vivani Medical. In addition to that, PepGen is 7.88 times more volatile than Vivani Medical. It trades about -0.04 of its total potential returns per unit of risk. Vivani Medical is currently generating about -0.04 per unit of volatility. If you would invest  118.00  in Vivani Medical on December 28, 2024 and sell it today you would lose (7.00) from holding Vivani Medical or give up 5.93% of portfolio value over 90 days.

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

PepGen  vs.  Vivani Medical

PepGen

Risk-Adjusted Performance

Very Weak

Over the last 90 days PepGen 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 nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 PepGen and Vivani Medical

The main advantage of trading using opposite PepGen and Vivani Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PepGen 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 PepGen 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.