Correlation Between Vaxxinity and LakeShore Biopharma

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

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

Diversification Opportunities for Vaxxinity and LakeShore Biopharma

0.0

Correlation Coefficient

Vaxxinity  LakeShore Biopharma

Pay attention - limited upside

The 3 months correlation between Vaxxinity and LakeShore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vaxxinity and LakeShore Biopharma Co, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LakeShore Biopharma Co, and Vaxxinity 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 Vaxxinity are associated (or correlated) with LakeShore Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LakeShore Biopharma Co, has no effect on the direction of Vaxxinity i.e., Vaxxinity and LakeShore Biopharma go up and down completely randomly.

Pair Corralation between Vaxxinity and LakeShore Biopharma

If you would invest  4.00  in LakeShore Biopharma Co, on November 28, 2024 and sell it today you would earn a total of  1.49  from holding LakeShore Biopharma Co, or generate 37.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Vaxxinity  vs.  LakeShore Biopharma Co,

Vaxxinity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vaxxinity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Vaxxinity is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

LakeShore Biopharma Co,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LakeShore Biopharma Co, are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, LakeShore Biopharma showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vaxxinity and LakeShore Biopharma

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

The idea behind Vaxxinity and LakeShore Biopharma Co, 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.