Correlation Between Vera Bradley and Genocea Biosciences

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

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

Diversification Opportunities for Vera Bradley and Genocea Biosciences

0.0

Correlation Coefficient

Vera Bradley  Genocea Biosciences

Pay attention - limited upside

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

Pair Corralation between Vera Bradley and Genocea Biosciences

If you would invest (100.00) in Genocea Biosciences on October 25, 2024 and sell it today you would earn a total of  100.00  from holding Genocea Biosciences or generate -100.0% return on investment over 90 days.

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

Vera Bradley  vs.  Genocea Biosciences

Vera Bradley

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vera Bradley has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Genocea Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genocea Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Genocea Biosciences is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Vera Bradley and Genocea Biosciences

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

The idea behind Vera Bradley and Genocea Biosciences 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.