Correlation Between Vaccinex and Oncternal Therapeutics

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

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

Diversification Opportunities for Vaccinex and Oncternal Therapeutics

0.71

Correlation Coefficient

Vaccinex  Oncternal Therapeutics

Poor diversification

The 3 months correlation between Vaccinex and Oncternal is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Vaccinex and Oncternal Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncternal Therapeutics 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 Oncternal Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncternal Therapeutics has no effect on the direction of Vaccinex i.e., Vaccinex and Oncternal Therapeutics go up and down completely randomly.

Pair Corralation between Vaccinex and Oncternal Therapeutics

Given the investment horizon of 90 days Vaccinex is expected to generate 0.87 times more return on investment than Oncternal Therapeutics. However, Vaccinex is 1.15 times less risky than Oncternal Therapeutics. It trades about -0.01 of its potential returns per unit of risk. Oncternal Therapeutics is currently generating about -0.13 per unit of risk. If you would invest  561.00  in Vaccinex on September 12, 2024 and sell it today you would lose (162.00) from holding Vaccinex or give up 28.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	93.65%
Values	Daily Returns

Vaccinex  vs.  Oncternal Therapeutics

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.

Oncternal Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oncternal Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Vaccinex and Oncternal Therapeutics

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

The idea behind Vaccinex and Oncternal Therapeutics 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 Stocks Directory module to find actively traded stocks across global markets.