Correlation Between ABVC Biopharma and Novavax
Can any of the company-specific risk be diversified away by investing in both ABVC Biopharma and Novavax 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 ABVC Biopharma and Novavax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABVC Biopharma and Novavax, you can compare the effects of market volatilities on ABVC Biopharma and Novavax 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 ABVC Biopharma with a short position of Novavax. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABVC Biopharma and Novavax.
Diversification Opportunities for ABVC Biopharma and Novavax
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between ABVC and Novavax is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding ABVC Biopharma and Novavax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novavax and ABVC Biopharma 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 ABVC Biopharma are associated (or correlated) with Novavax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novavax has no effect on the direction of ABVC Biopharma i.e., ABVC Biopharma and Novavax go up and down completely randomly.
Pair Corralation between ABVC Biopharma and Novavax
Given the investment horizon of 90 days ABVC Biopharma is expected to generate 2.22 times more return on investment than Novavax. However, ABVC Biopharma is 2.22 times more volatile than Novavax. It trades about 0.17 of its potential returns per unit of risk. Novavax is currently generating about 0.04 per unit of risk. If you would invest 140.00 in ABVC Biopharma on May 29, 2025 and sell it today you would earn a total of 158.00 from holding ABVC Biopharma or generate 112.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABVC Biopharma vs. Novavax
Performance |
| Timeline |
| ABVC Biopharma |
| Novavax |
ABVC Biopharma and Novavax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABVC Biopharma and Novavax
The main advantage of trading using opposite ABVC Biopharma and Novavax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABVC Biopharma position performs unexpectedly, Novavax 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 Novavax will offset losses from the drop in Novavax's long position.| ABVC Biopharma vs. RenovoRx | ABVC Biopharma vs. Adial Pharmaceuticals | ABVC Biopharma vs. Pasithea Therapeutics Corp | ABVC Biopharma vs. Ensysce Biosciences |
| Novavax vs. Moderna | Novavax vs. Inovio Pharmaceuticals | Novavax vs. BioNTech SE | Novavax vs. AstraZeneca PLC ADR |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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