Correlation Between Vaxart and Anixa Biosciences

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

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

Diversification Opportunities for Vaxart and Anixa Biosciences

0.33

Correlation Coefficient

Vaxart  Anixa Biosciences

Weak diversification

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

Pair Corralation between Vaxart and Anixa Biosciences

Given the investment horizon of 90 days Vaxart Inc is expected to generate 1.49 times more return on investment than Anixa Biosciences. However, Vaxart is 1.49 times more volatile than Anixa Biosciences. It trades about 0.02 of its potential returns per unit of risk. Anixa Biosciences is currently generating about -0.3 per unit of risk. If you would invest  61.00  in Vaxart Inc on September 25, 2024 and sell it today you would earn a total of  0.00  from holding Vaxart Inc or generate 0.0% return on investment over 90 days.

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

Vaxart Inc  vs.  Anixa Biosciences

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.

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.

Pair Trading with Vaxart and Anixa Biosciences

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

The idea behind Vaxart Inc and Anixa Biosciences 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.