Correlation Between Unity Biotechnology and VectivBio Holding

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

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

Diversification Opportunities for Unity Biotechnology and VectivBio Holding

0.0

Correlation Coefficient

Unity Biotechnology  VectivBio Holding

Pay attention - limited upside

The 3 months correlation between Unity and VectivBio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Unity Biotechnology and VectivBio Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VectivBio Holding and Unity Biotechnology 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 Unity Biotechnology are associated (or correlated) with VectivBio Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VectivBio Holding has no effect on the direction of Unity Biotechnology i.e., Unity Biotechnology and VectivBio Holding go up and down completely randomly.

Pair Corralation between Unity Biotechnology and VectivBio Holding

If you would invest (100.00) in VectivBio Holding AG on May 9, 2025 and sell it today you would earn a total of  100.00  from holding VectivBio Holding AG or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Unity Biotechnology  vs.  VectivBio Holding AG

Unity Biotechnology

Risk-Adjusted Performance

Weakest

Over the last 90 days Unity Biotechnology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental drivers remain fairly 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.

VectivBio Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days VectivBio Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, VectivBio Holding is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Unity Biotechnology and VectivBio Holding

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

The idea behind Unity Biotechnology and VectivBio Holding AG 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.