Correlation Between Vaxcyte and Ascendis Pharma

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

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

Diversification Opportunities for Vaxcyte and Ascendis Pharma

0.53

Correlation Coefficient

Vaxcyte  Ascendis Pharma

Very weak diversification

The 3 months correlation between Vaxcyte and Ascendis is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Vaxcyte and Ascendis Pharma AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Pharma AS and Vaxcyte 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 Vaxcyte are associated (or correlated) with Ascendis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Pharma AS has no effect on the direction of Vaxcyte i.e., Vaxcyte and Ascendis Pharma go up and down completely randomly.

Pair Corralation between Vaxcyte and Ascendis Pharma

Given the investment horizon of 90 days Vaxcyte is expected to generate 1.56 times more return on investment than Ascendis Pharma. However, Vaxcyte is 1.56 times more volatile than Ascendis Pharma AS. It trades about 0.07 of its potential returns per unit of risk. Ascendis Pharma AS is currently generating about 0.06 per unit of risk. If you would invest  2,924  in Vaxcyte on May 6, 2025 and sell it today you would earn a total of  378.00  from holding Vaxcyte or generate 12.93% return on investment over 90 days.

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

Vaxcyte  vs.  Ascendis Pharma AS

Vaxcyte

Risk-Adjusted Performance

Modest

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

Ascendis Pharma AS

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ascendis Pharma AS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Ascendis Pharma may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Vaxcyte and Ascendis Pharma

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

The idea behind Vaxcyte and Ascendis Pharma AS 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.