Correlation Between Hoth Therapeutics and Virpax Pharmaceuticals

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

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

Diversification Opportunities for Hoth Therapeutics and Virpax Pharmaceuticals

-0.19

Correlation Coefficient

Hoth Therapeutics  Virpax Pharmaceuticals

Good diversification

The 3 months correlation between Hoth and Virpax is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hoth Therapeutics and Virpax Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virpax Pharmaceuticals 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 Virpax Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virpax Pharmaceuticals has no effect on the direction of Hoth Therapeutics i.e., Hoth Therapeutics and Virpax Pharmaceuticals go up and down completely randomly.

Pair Corralation between Hoth Therapeutics and Virpax Pharmaceuticals

Given the investment horizon of 90 days Hoth Therapeutics is expected to under-perform the Virpax Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Hoth Therapeutics is 5.86 times less risky than Virpax Pharmaceuticals. The stock trades about -0.08 of its potential returns per unit of risk. The Virpax Pharmaceuticals is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1.00  in Virpax Pharmaceuticals on September 12, 2025 and sell it today you would earn a total of  1.10  from holding Virpax Pharmaceuticals or generate 110.0% 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.  Virpax Pharmaceuticals

Hoth Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Hoth Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Virpax Pharmaceuticals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Virpax Pharmaceuticals are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Virpax Pharmaceuticals showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hoth Therapeutics and Virpax Pharmaceuticals

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

The idea behind Hoth Therapeutics and Virpax Pharmaceuticals 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.