Correlation Between Hoth Therapeutics and MetaVia

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

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

Diversification Opportunities for Hoth Therapeutics and MetaVia

-0.33

Correlation Coefficient

Hoth Therapeutics  MetaVia

Very good diversification

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

Pair Corralation between Hoth Therapeutics and MetaVia

Given the investment horizon of 90 days Hoth Therapeutics is expected to generate 1.93 times more return on investment than MetaVia. However, Hoth Therapeutics is 1.93 times more volatile than MetaVia. It trades about 0.1 of its potential returns per unit of risk. MetaVia is currently generating about -0.05 per unit of risk. If you would invest  87.00  in Hoth Therapeutics on May 5, 2025 and sell it today you would earn a total of  44.00  from holding Hoth Therapeutics or generate 50.57% return on investment over 90 days.

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

Hoth Therapeutics  vs.  MetaVia

Hoth Therapeutics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hoth Therapeutics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Hoth Therapeutics demonstrated solid returns over the last few months and may actually be approaching a breakup point.

MetaVia

Risk-Adjusted Performance

Very Weak

Over the last 90 days MetaVia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Hoth Therapeutics and MetaVia

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

The idea behind Hoth Therapeutics and MetaVia 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.