Correlation Between VBI Vaccines and Affimed NV

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

By analyzing existing cross correlation between VBI Vaccines and Affimed NV, you can compare the effects of market volatilities on VBI Vaccines and Affimed NV 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 Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of VBI Vaccines and Affimed NV.

Diversification Opportunities for VBI Vaccines and Affimed NV

0.77

Correlation Coefficient

VBI Vaccines  Affimed NV

Poor diversification

The 3 months correlation between VBI and Affimed is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding VBI Vaccines and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed NV 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 Affimed NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affimed NV has no effect on the direction of VBI Vaccines i.e., VBI Vaccines and Affimed NV go up and down completely randomly.

Pair Corralation between VBI Vaccines and Affimed NV

If you would invest (100.00) in VBI Vaccines on September 24, 2024 and sell it today you would earn a total of  100.00  from holding VBI Vaccines or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	0.0%
Values	Daily Returns

VBI Vaccines  vs.  Affimed NV

VBI Vaccines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VBI Vaccines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, VBI Vaccines is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Affimed NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Affimed NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with VBI Vaccines and Affimed NV

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

The idea behind VBI Vaccines and Affimed NV 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.