Correlation Between Indaptus Therapeutics and Virpax Pharmaceuticals

Can any of the company-specific risk be diversified away by investing in both Indaptus 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 Indaptus 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 Indaptus Therapeutics and Virpax Pharmaceuticals, you can compare the effects of market volatilities on Indaptus 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 Indaptus Therapeutics with a short position of Virpax Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indaptus Therapeutics and Virpax Pharmaceuticals.

Diversification Opportunities for Indaptus Therapeutics and Virpax Pharmaceuticals

0.46

Correlation Coefficient

Indaptus Therapeutics  Virpax Pharmaceuticals

Very weak diversification

The 3 months correlation between Indaptus and Virpax is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Indaptus Therapeutics and Virpax Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virpax Pharmaceuticals and Indaptus 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 Indaptus 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 Indaptus Therapeutics i.e., Indaptus Therapeutics and Virpax Pharmaceuticals go up and down completely randomly.

Pair Corralation between Indaptus Therapeutics and Virpax Pharmaceuticals

Given the investment horizon of 90 days Indaptus Therapeutics is expected to under-perform the Virpax Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Indaptus Therapeutics is 4.28 times less risky than Virpax Pharmaceuticals. The stock trades about -0.15 of its potential returns per unit of risk. The Virpax Pharmaceuticals is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  33.00  in Virpax Pharmaceuticals on July 20, 2025 and sell it today you would lose (30.90) from holding Virpax Pharmaceuticals or give up 93.64% of portfolio value over 90 days.

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

Indaptus Therapeutics  vs.  Virpax Pharmaceuticals

Indaptus Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Indaptus Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in November 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Virpax Pharmaceuticals

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Virpax Pharmaceuticals are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Virpax Pharmaceuticals showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Indaptus Therapeutics and Virpax Pharmaceuticals

The main advantage of trading using opposite Indaptus Therapeutics and Virpax Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indaptus 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 Indaptus 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.