Correlation Between Vaccinex and Vivani Medical

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

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

Diversification Opportunities for Vaccinex and Vivani Medical

0.33

Correlation Coefficient

Vaccinex  Vivani Medical

Weak diversification

The 3 months correlation between Vaccinex and Vivani is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Vaccinex and Vivani Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivani Medical 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 Vivani Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivani Medical has no effect on the direction of Vaccinex i.e., Vaccinex and Vivani Medical go up and down completely randomly.

Pair Corralation between Vaccinex and Vivani Medical

Given the investment horizon of 90 days Vaccinex is expected to under-perform the Vivani Medical. In addition to that, Vaccinex is 3.12 times more volatile than Vivani Medical. It trades about -0.01 of its total potential returns per unit of risk. Vivani Medical is currently generating about 0.02 per unit of volatility. If you would invest  129.00  in Vivani Medical on September 13, 2024 and sell it today you would earn a total of  1.10  from holding Vivani Medical or generate 0.85% return on investment over 90 days.

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

Vaccinex  vs.  Vivani Medical

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.

Vivani Medical

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vivani Medical are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Vivani Medical is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Vaccinex and Vivani Medical

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

The idea behind Vaccinex and Vivani Medical 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.