Correlation Between Vivani Medical and Yield10 Bioscience

Can any of the company-specific risk be diversified away by investing in both Vivani Medical and Yield10 Bioscience 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 Yield10 Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vivani Medical and Yield10 Bioscience, you can compare the effects of market volatilities on Vivani Medical and Yield10 Bioscience 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 Yield10 Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivani Medical and Yield10 Bioscience.

Diversification Opportunities for Vivani Medical and Yield10 Bioscience

0.29

Correlation Coefficient

Vivani Medical  Yield10 Bioscience

Modest diversification

The 3 months correlation between Vivani and Yield10 is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Vivani Medical and Yield10 Bioscience in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yield10 Bioscience 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 Yield10 Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yield10 Bioscience has no effect on the direction of Vivani Medical i.e., Vivani Medical and Yield10 Bioscience go up and down completely randomly.

Pair Corralation between Vivani Medical and Yield10 Bioscience

Given the investment horizon of 90 days Vivani Medical is expected to under-perform the Yield10 Bioscience. But the stock apears to be less risky and, when comparing its historical volatility, Vivani Medical is 56.7 times less risky than Yield10 Bioscience. The stock trades about -0.06 of its potential returns per unit of risk. The Yield10 Bioscience is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  34.00  in Yield10 Bioscience on December 20, 2024 and sell it today you would lose (32.50) from holding Yield10 Bioscience or give up 95.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	70.0%
Values	Daily Returns

Vivani Medical  vs.  Yield10 Bioscience

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 latest weak performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Yield10 Bioscience

Risk-Adjusted Performance

OK

Over the last 90 days Yield10 Bioscience has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak technical and fundamental indicators, Yield10 Bioscience displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vivani Medical and Yield10 Bioscience

The main advantage of trading using opposite Vivani Medical and Yield10 Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivani Medical position performs unexpectedly, Yield10 Bioscience 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 Yield10 Bioscience will offset losses from the drop in Yield10 Bioscience's long position.

The idea behind Vivani Medical and Yield10 Bioscience 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.