Correlation Between VBI Vaccines and Infinity Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both VBI Vaccines and Infinity Pharmaceuticals 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 Infinity Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VBI Vaccines and Infinity Pharmaceuticals, you can compare the effects of market volatilities on VBI Vaccines and Infinity Pharmaceuticals 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 Infinity Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of VBI Vaccines and Infinity Pharmaceuticals.
Diversification Opportunities for VBI Vaccines and Infinity Pharmaceuticals
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between VBI and Infinity is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding VBI Vaccines and Infinity Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinity Pharmaceuticals 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 Infinity Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinity Pharmaceuticals has no effect on the direction of VBI Vaccines i.e., VBI Vaccines and Infinity Pharmaceuticals go up and down completely randomly.
Pair Corralation between VBI Vaccines and Infinity Pharmaceuticals
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 | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
VBI Vaccines vs. Infinity Pharmaceuticals
Performance |
| Timeline |
| VBI Vaccines |
| Infinity Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VBI Vaccines and Infinity Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VBI Vaccines and Infinity Pharmaceuticals
The main advantage of trading using opposite VBI Vaccines and Infinity Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VBI Vaccines position performs unexpectedly, Infinity Pharmaceuticals 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 Infinity Pharmaceuticals will offset losses from the drop in Infinity Pharmaceuticals' long position.| VBI Vaccines vs. Tonix Pharmaceuticals Holding | VBI Vaccines vs. Jaguar Animal Health | VBI Vaccines vs. Vaxart Inc | VBI Vaccines vs. Allogene Therapeutics |
| Infinity Pharmaceuticals vs. NextCure | Infinity Pharmaceuticals vs. Chimerix | Infinity Pharmaceuticals vs. Eledon Pharmaceuticals | Infinity Pharmaceuticals vs. CytomX Therapeutics |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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