Correlation Between VBI Vaccines and Menlo Therapeutics
Can any of the company-specific risk be diversified away by investing in both VBI Vaccines and Menlo 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 VBI Vaccines and Menlo Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VBI Vaccines and Menlo Therapeutics, you can compare the effects of market volatilities on VBI Vaccines and Menlo 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 VBI Vaccines with a short position of Menlo Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of VBI Vaccines and Menlo Therapeutics.
Diversification Opportunities for VBI Vaccines and Menlo Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VBI and Menlo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VBI Vaccines and Menlo Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menlo Therapeutics and VBI Vaccines 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 VBI Vaccines are associated (or correlated) with Menlo Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menlo Therapeutics has no effect on the direction of VBI Vaccines i.e., VBI Vaccines and Menlo Therapeutics go up and down completely randomly.
Pair Corralation between VBI Vaccines and Menlo Therapeutics
If you would invest 57.00 in VBI Vaccines on January 20, 2024 and sell it today you would earn a total of 6.00 from holding VBI Vaccines or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
VBI Vaccines vs. Menlo Therapeutics
Performance |
| Timeline |
| VBI Vaccines |
| Menlo Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VBI Vaccines and Menlo Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VBI Vaccines and Menlo Therapeutics
The main advantage of trading using opposite VBI Vaccines and Menlo Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VBI Vaccines position performs unexpectedly, Menlo 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 Menlo Therapeutics will offset losses from the drop in Menlo Therapeutics' long position.| VBI Vaccines vs. Tonix Pharmaceuticals Holding | VBI Vaccines vs. Jaguar Animal Health | VBI Vaccines vs. Vaxart Inc | VBI Vaccines vs. Allogene Therapeutics |
| Menlo Therapeutics vs. Amkor Technology | Menlo Therapeutics vs. Sapiens International | Menlo Therapeutics vs. Kaltura | Menlo Therapeutics vs. Weibo Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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