Correlation Between Rain Therapeutics and Vaxart

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

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

Diversification Opportunities for Rain Therapeutics and Vaxart

0.64

Correlation Coefficient

Rain Therapeutics  Vaxart

Poor diversification

The 3 months correlation between Rain and Vaxart is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Rain Therapeutics and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart Inc and Rain 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 Rain 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 Rain Therapeutics i.e., Rain Therapeutics and Vaxart go up and down completely randomly.

Pair Corralation between Rain Therapeutics and Vaxart

If you would invest  141.00  in Rain Therapeutics on August 31, 2024 and sell it today you would earn a total of  0.00  from holding Rain Therapeutics or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.59%
Values	Daily Returns

Rain Therapeutics  vs.  Vaxart Inc

Rain Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rain Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Rain Therapeutics is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the 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 unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Rain Therapeutics and Vaxart

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

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.