Correlation Between GeoVax Labs and ACST Old

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

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

Diversification Opportunities for GeoVax Labs and ACST Old

0.0

Correlation Coefficient

GeoVax Labs  ACST Old

Pay attention - limited upside

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

Pair Corralation between GeoVax Labs and ACST Old

If you would invest (100.00) in ACST Old on December 28, 2024 and sell it today you would earn a total of  100.00  from holding ACST 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

GeoVax Labs  vs.  ACST Old

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.

ACST Old

Risk-Adjusted Performance

Very Weak

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

Pair Trading with GeoVax Labs and ACST Old

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

The idea behind GeoVax Labs and ACST Old 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.