Correlation Between Novavax and Day One

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

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

Diversification Opportunities for Novavax and Day One

-0.67

Correlation Coefficient

Novavax  Day One

Excellent diversification

The 3 months correlation between Novavax and Day is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Novavax and Day One Biopharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Day One Biopharmaceu and Novavax 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 Novavax are associated (or correlated) with Day One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Day One Biopharmaceu has no effect on the direction of Novavax i.e., Novavax and Day One go up and down completely randomly.

Pair Corralation between Novavax and Day One

Given the investment horizon of 90 days Novavax is expected to generate 0.53 times more return on investment than Day One. However, Novavax is 1.9 times less risky than Day One. It trades about -0.18 of its potential returns per unit of risk. Day One Biopharmaceuticals is currently generating about -0.17 per unit of risk. If you would invest  744.00  in Novavax on September 12, 2025 and sell it today you would lose (75.00) from holding Novavax or give up 10.08% of portfolio value over 90 days.

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

Novavax  vs.  Day One Biopharmaceuticals

Novavax

Risk-Adjusted Performance

Weakest

Over the last 90 days Novavax has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady 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 current disturbance may also be a sign of long term up-swing for the company investors.

Day One Biopharmaceu

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Day One Biopharmaceuticals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Day One displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Novavax and Day One

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

The idea behind Novavax and Day One Biopharmaceuticals 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.