Correlation Between Vaxxinity and SmileDirectClub
Can any of the company-specific risk be diversified away by investing in both Vaxxinity and SmileDirectClub 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 Vaxxinity and SmileDirectClub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vaxxinity and SmileDirectClub, you can compare the effects of market volatilities on Vaxxinity and SmileDirectClub 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 Vaxxinity with a short position of SmileDirectClub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaxxinity and SmileDirectClub.
Diversification Opportunities for Vaxxinity and SmileDirectClub
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vaxxinity and SmileDirectClub is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Vaxxinity and SmileDirectClub in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmileDirectClub and Vaxxinity 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 Vaxxinity are associated (or correlated) with SmileDirectClub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmileDirectClub has no effect on the direction of Vaxxinity i.e., Vaxxinity and SmileDirectClub go up and down completely randomly.
Pair Corralation between Vaxxinity and SmileDirectClub
Given the investment horizon of 90 days Vaxxinity is expected to generate 2.15 times more return on investment than SmileDirectClub. However, Vaxxinity is 2.15 times more volatile than SmileDirectClub. It trades about 0.39 of its potential returns per unit of risk. SmileDirectClub is currently generating about 0.16 per unit of risk. If you would invest 3.00 in Vaxxinity on August 24, 2025 and sell it today you would lose (1.50) from holding Vaxxinity or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vaxxinity vs. SmileDirectClub
Performance |
| Timeline |
| Vaxxinity |
| SmileDirectClub |
Vaxxinity and SmileDirectClub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vaxxinity and SmileDirectClub
The main advantage of trading using opposite Vaxxinity and SmileDirectClub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vaxxinity position performs unexpectedly, SmileDirectClub 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 SmileDirectClub will offset losses from the drop in SmileDirectClub's long position.| Vaxxinity vs. PaxMedica, Common Stock | Vaxxinity vs. Orphazyme AS | Vaxxinity vs. NovAccess Global | Vaxxinity vs. Trevena |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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