Correlation Between Vivani Medical and Actinium Pharmaceuticals

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

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

Diversification Opportunities for Vivani Medical and Actinium Pharmaceuticals

-0.46

Correlation Coefficient

Vivani Medical  Actinium Pharmaceuticals

Very good diversification

The 3 months correlation between Vivani and Actinium is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Vivani Medical and Actinium Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinium Pharmaceuticals and Vivani Medical 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 Vivani Medical are associated (or correlated) with Actinium Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinium Pharmaceuticals has no effect on the direction of Vivani Medical i.e., Vivani Medical and Actinium Pharmaceuticals go up and down completely randomly.

Pair Corralation between Vivani Medical and Actinium Pharmaceuticals

Given the investment horizon of 90 days Vivani Medical is expected to generate 0.4 times more return on investment than Actinium Pharmaceuticals. However, Vivani Medical is 2.47 times less risky than Actinium Pharmaceuticals. It trades about -0.02 of its potential returns per unit of risk. Actinium Pharmaceuticals is currently generating about -0.13 per unit of risk. If you would invest  162.00  in Vivani Medical on September 5, 2024 and sell it today you would lose (21.00) from holding Vivani Medical or give up 12.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.2%
Values	Daily Returns

Vivani Medical  vs.  Actinium Pharmaceuticals

Vivani Medical

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vivani Medical are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting basic indicators, Vivani Medical demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Actinium Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Actinium Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Vivani Medical and Actinium Pharmaceuticals

The main advantage of trading using opposite Vivani Medical and Actinium Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivani Medical position performs unexpectedly, Actinium Pharmaceuticals 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 Actinium Pharmaceuticals will offset losses from the drop in Actinium Pharmaceuticals' long position.

The idea behind Vivani Medical and Actinium Pharmaceuticals 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.