Correlation Between VBI Vaccines and Addex Therapeutics
Can any of the company-specific risk be diversified away by investing in both VBI Vaccines and Addex 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 Addex 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 Addex Therapeutics, you can compare the effects of market volatilities on VBI Vaccines and Addex 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 Addex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of VBI Vaccines and Addex Therapeutics.
Diversification Opportunities for VBI Vaccines and Addex Therapeutics
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between VBI and Addex is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding VBI Vaccines and Addex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addex 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 Addex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addex Therapeutics has no effect on the direction of VBI Vaccines i.e., VBI Vaccines and Addex Therapeutics go up and down completely randomly.
Pair Corralation between VBI Vaccines and Addex Therapeutics
Given the investment horizon of 90 days VBI Vaccines is expected to generate 0.48 times more return on investment than Addex Therapeutics. However, VBI Vaccines is 2.09 times less risky than Addex Therapeutics. It trades about -0.27 of its potential returns per unit of risk. Addex Therapeutics is currently generating about -0.2 per unit of risk. If you would invest 92.00 in VBI Vaccines on February 6, 2024 and sell it today you would lose (33.00) from holding VBI Vaccines or give up 35.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
VBI Vaccines vs. Addex Therapeutics
Performance |
Timeline |
VBI Vaccines |
Addex Therapeutics |
VBI Vaccines and Addex Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VBI Vaccines and Addex Therapeutics
The main advantage of trading using opposite VBI Vaccines and Addex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VBI Vaccines position performs unexpectedly, Addex 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 Addex Therapeutics will offset losses from the drop in Addex Therapeutics' long position.VBI Vaccines vs. Veritas Pharma | VBI Vaccines vs. Sangui Biotech International | VBI Vaccines vs. Raphael Pharmaceutical | VBI Vaccines vs. GelStat Corp |
Addex Therapeutics vs. Veritas Pharma | Addex Therapeutics vs. Sangui Biotech International | Addex Therapeutics vs. Raphael Pharmaceutical | Addex Therapeutics vs. GelStat 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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