Correlation Between Gelesis Holdings and Jaguar Animal

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

By analyzing existing cross correlation between Gelesis Holdings and Jaguar Animal Health, you can compare the effects of market volatilities on Gelesis Holdings and Jaguar Animal 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 Gelesis Holdings with a short position of Jaguar Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gelesis Holdings and Jaguar Animal.

Diversification Opportunities for Gelesis Holdings and Jaguar Animal

0.0

Correlation Coefficient

Gelesis Holdings  Jaguar Animal

Pay attention - limited upside

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

Pair Corralation between Gelesis Holdings and Jaguar Animal

If you would invest (100.00) in Gelesis Holdings on September 21, 2024 and sell it today you would earn a total of  100.00  from holding Gelesis Holdings 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

Gelesis Holdings  vs.  Jaguar Animal Health

Gelesis Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gelesis Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Gelesis Holdings is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Jaguar Animal Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jaguar Animal Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Gelesis Holdings and Jaguar Animal

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

The idea behind Gelesis Holdings and Jaguar Animal Health 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.

Check out your portfolio center.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.