Correlation Between Vericel Corp and VBI Vaccines
Can any of the company-specific risk be diversified away by investing in both Vericel Corp and VBI Vaccines 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 Vericel Corp and VBI Vaccines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vericel Corp Ord and VBI Vaccines, you can compare the effects of market volatilities on Vericel Corp and VBI Vaccines 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 Vericel Corp with a short position of VBI Vaccines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vericel Corp and VBI Vaccines.
Diversification Opportunities for Vericel Corp and VBI Vaccines
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Vericel and VBI is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Vericel Corp Ord and VBI Vaccines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VBI Vaccines and Vericel Corp 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 Vericel Corp Ord are associated (or correlated) with VBI Vaccines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VBI Vaccines has no effect on the direction of Vericel Corp i.e., Vericel Corp and VBI Vaccines go up and down completely randomly.
Pair Corralation between Vericel Corp and VBI Vaccines
Given the investment horizon of 90 days Vericel Corp Ord is expected to under-perform the VBI Vaccines. But the stock apears to be less risky and, when comparing its historical volatility, Vericel Corp Ord is 4.06 times less risky than VBI Vaccines. The stock trades about -0.06 of its potential returns per unit of risk. The VBI Vaccines is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 57.00 in VBI Vaccines on January 25, 2024 and sell it today you would earn a total of 2.00 from holding VBI Vaccines or generate 3.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Vericel Corp Ord vs. VBI Vaccines
Performance |
Timeline |
Vericel Corp Ord |
VBI Vaccines |
Vericel Corp and VBI Vaccines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vericel Corp and VBI Vaccines
The main advantage of trading using opposite Vericel Corp and VBI Vaccines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vericel Corp position performs unexpectedly, VBI Vaccines 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 VBI Vaccines will offset losses from the drop in VBI Vaccines' long position.Vericel Corp vs. Collplant Biotechnologies | Vericel Corp vs. Keros TherapeuticsInc | Vericel Corp vs. Merus BV | Vericel Corp vs. Century Therapeutics |
VBI Vaccines vs. Tonix Pharmaceuticals Holding | VBI Vaccines vs. Jaguar Animal Health | VBI Vaccines vs. Vaxart Inc | VBI Vaccines vs. Allogene 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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