Correlation Between VTv Therapeutics and Polygon L
Can any of the company-specific risk be diversified away by investing in both VTv Therapeutics and Polygon L 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 VTv Therapeutics and Polygon L into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between vTv Therapeutics and Polygon L, you can compare the effects of market volatilities on VTv Therapeutics and Polygon L 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 VTv Therapeutics with a short position of Polygon L. Check out your portfolio center. Please also check ongoing floating volatility patterns of VTv Therapeutics and Polygon L.
Diversification Opportunities for VTv Therapeutics and Polygon L
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VTv and Polygon is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding vTv Therapeutics and Polygon L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polygon L and VTv Therapeutics 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 vTv Therapeutics are associated (or correlated) with Polygon L. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polygon L has no effect on the direction of VTv Therapeutics i.e., VTv Therapeutics and Polygon L go up and down completely randomly.
Pair Corralation between VTv Therapeutics and Polygon L
Given the investment horizon of 90 days vTv Therapeutics is expected to under-perform the Polygon L. In addition to that, VTv Therapeutics is 2.19 times more volatile than Polygon L. It trades about -0.01 of its total potential returns per unit of risk. Polygon L is currently generating about 0.09 per unit of volatility. If you would invest 369,700 in Polygon L on January 20, 2024 and sell it today you would earn a total of 15,300 from holding Polygon L or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.71% |
| Values | Daily Returns |
vTv Therapeutics vs. Polygon L
Performance |
| Timeline |
| vTv Therapeutics |
| Polygon L |
VTv Therapeutics and Polygon L Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VTv Therapeutics and Polygon L
The main advantage of trading using opposite VTv Therapeutics and Polygon L positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VTv Therapeutics position performs unexpectedly, Polygon L 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 Polygon L will offset losses from the drop in Polygon L's long position.| VTv Therapeutics vs. Pmv PharmaceuticalsInc | VTv Therapeutics vs. PepGen | VTv Therapeutics vs. Molecular Partners AG | VTv Therapeutics vs. Adagene |
| Polygon L vs. Migdal Insurance | Polygon L vs. The Phoenix Holdings | Polygon L vs. Harel Insurance Investments | Polygon L vs. Clal Insurance Enterprises |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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