Correlation Between Virax Biolabs and Comera Life

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

By analyzing existing cross correlation between Virax Biolabs Group and Comera Life Sciences, you can compare the effects of market volatilities on Virax Biolabs and Comera Life 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 Virax Biolabs with a short position of Comera Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virax Biolabs and Comera Life.

Diversification Opportunities for Virax Biolabs and Comera Life

0.0

Correlation Coefficient

Virax Biolabs  Comera Life

Pay attention - limited upside

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

Pair Corralation between Virax Biolabs and Comera Life

If you would invest  195.00  in Virax Biolabs Group on December 1, 2024 and sell it today you would lose (28.00) from holding Virax Biolabs Group or give up 14.36% of portfolio value over 90 days.

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

Virax Biolabs Group  vs.  Comera Life Sciences

Virax Biolabs Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Virax Biolabs Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Virax Biolabs may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Comera Life Sciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Comera Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Comera Life is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Virax Biolabs and Comera Life

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

The idea behind Virax Biolabs Group and Comera Life Sciences 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.