diversifiable risk of combining VBI Vaccines and Vivani Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VBI Vaccines and Vivani Medical, you can compare the effects of market volatilities on VBI Vaccines and Vivani Medical 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 Vivani Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of VBI Vaccines and Vivani Medical.
Diversification Opportunities for VBI Vaccines and Vivani Medical
Pair Corralation between VBI Vaccines and Vivani Medical
Given the investment horizon of 90 days VBI Vaccines is expected to generate 1.15 times less return on investment than Vivani Medical. In addition to that, VBI Vaccines is 2.41 times more volatile than Vivani Medical. It trades about 0.07 of its total potential returns per unit of risk. Vivani Medical is currently generating about 0.21 per unit of volatility. If you would invest 102.00 in Vivani Medical on November 24, 2023 and sell it today you would earn a total of 8.00 from holding Vivani Medical or generate 7.84% return on investment over 90 days.
|3 Months [change]
VBI Vaccines vs. Vivani Medical
VBI Vaccines and Vivani Medical Volatility Contrast
Pair Trading with VBI Vaccines and Vivani MedicalThe main advantage of trading using opposite VBI Vaccines and Vivani Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VBI Vaccines position performs unexpectedly, Vivani Medical 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 Vivani Medical will offset losses from the drop in Vivani Medical's long position. The idea behind VBI Vaccines and Vivani Medical 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.
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Search for actively traded equities including funds and ETFs from over 30 global markets
Use AI to screen and filter profitable investment opportunities
Find actively traded stocks across global markets
Use generated alerts and portfolio events aggregator to diagnose current holdings
Quickly integrate customizable finance content to your own investment portal
|Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Analyze current equity momentum using Aroon Oscillator and other momentum ratios