Correlation Between Anixa Biosciences and Vaxart

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

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

Diversification Opportunities for Anixa Biosciences and Vaxart

0.33

Correlation Coefficient

Anixa Biosciences  Vaxart

Weak diversification

The 3 months correlation between Anixa and Vaxart is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Anixa Biosciences and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart Inc and Anixa Biosciences 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 Anixa Biosciences are associated (or correlated) with Vaxart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxart Inc has no effect on the direction of Anixa Biosciences i.e., Anixa Biosciences and Vaxart go up and down completely randomly.

Pair Corralation between Anixa Biosciences and Vaxart

Given the investment horizon of 90 days Anixa Biosciences is expected to generate 1.04 times more return on investment than Vaxart. However, Anixa Biosciences is 1.04 times more volatile than Vaxart Inc. It trades about -0.06 of its potential returns per unit of risk. Vaxart Inc is currently generating about -0.08 per unit of risk. If you would invest  315.00  in Anixa Biosciences on September 25, 2024 and sell it today you would lose (59.00) from holding Anixa Biosciences or give up 18.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Anixa Biosciences  vs.  Vaxart Inc

Anixa Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anixa Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Vaxart Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vaxart Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Anixa Biosciences and Vaxart

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

The idea behind Anixa Biosciences and Vaxart 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.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.