Correlation Between Vaxart and Ocugen

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

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

Diversification Opportunities for Vaxart and Ocugen

-0.34

Correlation Coefficient

Vaxart  Ocugen

Very good diversification

The 3 months correlation between Vaxart and Ocugen is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Vaxart Inc and Ocugen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocugen Inc 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 Ocugen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocugen Inc has no effect on the direction of Vaxart i.e., Vaxart and Ocugen go up and down completely randomly.

Pair Corralation between Vaxart and Ocugen

Given the investment horizon of 90 days Vaxart is expected to generate 1.8 times less return on investment than Ocugen. But when comparing it to its historical volatility, Vaxart Inc is 1.14 times less risky than Ocugen. It trades about 0.15 of its potential returns per unit of risk. Ocugen Inc is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  125.00  in Ocugen Inc on February 23, 2024 and sell it today you would earn a total of  53.00  from holding Ocugen Inc or generate 42.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vaxart Inc  vs.  Ocugen Inc

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Ocugen Inc

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ocugen Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Ocugen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vaxart and Ocugen

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

The idea behind Vaxart Inc and Ocugen Inc 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.