Correlation Between Viatris and Evogene

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

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

Diversification Opportunities for Viatris and Evogene

0.59

Correlation Coefficient

Viatris  Evogene

Very weak diversification

The 3 months correlation between Viatris and Evogene is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Viatris and Evogene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evogene and Viatris 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 Viatris are associated (or correlated) with Evogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evogene has no effect on the direction of Viatris i.e., Viatris and Evogene go up and down completely randomly.

Pair Corralation between Viatris and Evogene

Given the investment horizon of 90 days Viatris is expected to under-perform the Evogene. But the stock apears to be less risky and, when comparing its historical volatility, Viatris is 1.55 times less risky than Evogene. The stock trades about -0.22 of its potential returns per unit of risk. The Evogene is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest  192.00  in Evogene on December 29, 2024 and sell it today you would lose (57.00) from holding Evogene or give up 29.69% of portfolio value over 90 days.

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

Viatris  vs.  Evogene

Viatris

Risk-Adjusted Performance

Very Weak

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

Evogene

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evogene has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Viatris and Evogene

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

The idea behind Viatris and Evogene 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..