Correlation Between Entera Bio and GeoVax Labs

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

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

Diversification Opportunities for Entera Bio and GeoVax Labs

0.0

Correlation Coefficient

Entera Bio  GeoVax Labs

Pay attention - limited upside

The 3 months correlation between Entera and GeoVax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Entera Bio and GeoVax Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeoVax Labs and Entera Bio 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 Entera Bio 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 Entera Bio i.e., Entera Bio and GeoVax Labs go up and down completely randomly.

Pair Corralation between Entera Bio and GeoVax Labs

If you would invest  10.00  in GeoVax Labs on December 28, 2024 and sell it today you would lose (4.97) from holding GeoVax Labs or give up 49.7% of portfolio value over 90 days.

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

Entera Bio  vs.  GeoVax Labs

Entera Bio

Risk-Adjusted Performance

Very Weak

Over the last 90 days Entera Bio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Entera Bio is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

GeoVax Labs

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GeoVax Labs are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, GeoVax Labs showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Entera Bio and GeoVax Labs

The main advantage of trading using opposite Entera Bio and GeoVax Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entera Bio 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 Entera Bio 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.