Correlation Between AEZS Old and GeoVax Labs

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

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

Diversification Opportunities for AEZS Old and GeoVax Labs

0.0

Correlation Coefficient

AEZS Old  GeoVax Labs

Pay attention - limited upside

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

Pair Corralation between AEZS Old and GeoVax Labs

If you would invest (100.00) in AEZS Old on December 19, 2024 and sell it today you would earn a total of  100.00  from holding AEZS Old 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

AEZS Old  vs.  GeoVax Labs

AEZS Old

Risk-Adjusted Performance

Very Weak

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

GeoVax Labs

Risk-Adjusted Performance

Very Weak

Over the last 90 days GeoVax Labs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with AEZS Old and GeoVax Labs

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

The idea behind AEZS Old and GeoVax Labs 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.