Correlation Between Vascular Biogenics and Aditxt

Can any of the company-specific risk be diversified away by investing in both Vascular Biogenics and Aditxt 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 Vascular Biogenics and Aditxt into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vascular Biogenics and Aditxt Inc, you can compare the effects of market volatilities on Vascular Biogenics and Aditxt 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 Vascular Biogenics with a short position of Aditxt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vascular Biogenics and Aditxt.

Diversification Opportunities for Vascular Biogenics and Aditxt

Very good diversification

The 3 months correlation between Vascular and Aditxt is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Vascular Biogenics and Aditxt Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aditxt Inc and Vascular Biogenics 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 Vascular Biogenics are associated (or correlated) with Aditxt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aditxt Inc has no effect on the direction of Vascular Biogenics i.e., Vascular Biogenics and Aditxt go up and down completely randomly.

Pair Corralation between Vascular Biogenics and Aditxt

Given the investment horizon of 90 days Vascular Biogenics is expected to generate 5.79 times less return on investment than Aditxt. But when comparing it to its historical volatility, Vascular Biogenics is 7.58 times less risky than Aditxt. It trades about 0.06 of its potential returns per unit of risk. Aditxt Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3,480  in Aditxt Inc on June 23, 2023 and sell it today you would lose (1,683) from holding Aditxt Inc or give up 48.36% of portfolio value over 90 days.

Vascular Biogenics  vs.  Aditxt Inc

Vascular Biogenics

Vascular Performance

0 of 100

Over the last 90 days Vascular Biogenics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Vascular Biogenics is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Aditxt Inc

Aditxt Performance

6 of 100

Compared to the overall equity markets, risk-adjusted returns on investments in Aditxt Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Aditxt showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vascular Biogenics and Aditxt

The main advantage of trading using opposite Vascular Biogenics and Aditxt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vascular Biogenics position performs unexpectedly, Aditxt 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 Aditxt will offset losses from the drop in Aditxt's long position.

The idea behind Vascular Biogenics and Aditxt Inc 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 Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.