Correlation Between Vaccinex and GH Research

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

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

Diversification Opportunities for Vaccinex and GH Research

0.29

Correlation Coefficient

Vaccinex  GH Research

Modest diversification

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

Pair Corralation between Vaccinex and GH Research

Given the investment horizon of 90 days Vaccinex is expected to under-perform the GH Research. In addition to that, Vaccinex is 2.03 times more volatile than GH Research PLC. It trades about -0.01 of its total potential returns per unit of risk. GH Research PLC is currently generating about 0.0 per unit of volatility. If you would invest  830.00  in GH Research PLC on September 13, 2024 and sell it today you would lose (57.00) from holding GH Research PLC or give up 6.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Vaccinex  vs.  GH Research PLC

Vaccinex

Risk-Adjusted Performance

0 of 100

Very Weak

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

GH Research PLC

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days GH Research PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, GH Research is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Vaccinex and GH Research

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

The idea behind Vaccinex and GH Research PLC 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.