Correlation Between Vaxxinity and Trevena

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

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

Diversification Opportunities for Vaxxinity and Trevena

0.0

Correlation Coefficient

Vaxxinity  Trevena

Pay attention - limited upside

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

Pair Corralation between Vaxxinity and Trevena

If you would invest (100.00) in Trevena on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Trevena or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vaxxinity  vs.  Trevena

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.

Trevena

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Vaxxinity and Trevena

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

The idea behind Vaxxinity and Trevena 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.