Correlation Between Vaxart and EnGene Holdings

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Can any of the company-specific risk be diversified away by investing in both Vaxart and EnGene Holdings 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 EnGene Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaxart Inc and enGene Holdings Common, you can compare the effects of market volatilities on Vaxart and EnGene Holdings 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 EnGene Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaxart and EnGene Holdings.

Diversification Opportunities for Vaxart and EnGene Holdings

VaxartEnGeneDiversified AwayVaxartEnGeneDiversified Away100%
-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between Vaxart and EnGene is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Vaxart Inc and enGene Holdings Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enGene Holdings Common 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 EnGene Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enGene Holdings Common has no effect on the direction of Vaxart i.e., Vaxart and EnGene Holdings go up and down completely randomly.

Pair Corralation between Vaxart and EnGene Holdings

Given the investment horizon of 90 days Vaxart Inc is expected to under-perform the EnGene Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Vaxart Inc is 1.34 times less risky than EnGene Holdings. The stock trades about -0.15 of its potential returns per unit of risk. The enGene Holdings Common is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  661.00  in enGene Holdings Common on September 4, 2024 and sell it today you would earn a total of  208.00  from holding enGene Holdings Common or generate 31.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.46%
ValuesDaily Returns

Vaxart Inc  vs.  enGene Holdings Common

 Performance 
JavaScript chart by amCharts 3.21.15SepOctNov -30-20-10010203040
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       Timeline  
Vaxart Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
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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 unfluctuating 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.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.60.70.80.91
enGene Holdings Common 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in enGene Holdings Common are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, EnGene Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.
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Vaxart and EnGene Holdings Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.95-4.46-2.96-1.47-0.02161.252.553.855.156.45 0.0200.0250.030
JavaScript chart by amCharts 3.21.15VXRT ENGN
       Returns  

Pair Trading with Vaxart and EnGene Holdings

The main advantage of trading using opposite Vaxart and EnGene Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaxart position performs unexpectedly, EnGene Holdings 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 EnGene Holdings will offset losses from the drop in EnGene Holdings' long position.
The idea behind Vaxart Inc and enGene Holdings Common 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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