Correlation Between GeoVax Labs and Jaguar Animal

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

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

Diversification Opportunities for GeoVax Labs and Jaguar Animal

0.81

Correlation Coefficient

GeoVax Labs  Jaguar Animal

Very poor diversification

The 3 months correlation between GeoVax and Jaguar is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding GeoVax Labs 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 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 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 GeoVax Labs i.e., GeoVax Labs and Jaguar Animal go up and down completely randomly.

Pair Corralation between GeoVax Labs and Jaguar Animal

Given the investment horizon of 90 days GeoVax Labs is expected to generate 0.56 times more return on investment than Jaguar Animal. However, GeoVax Labs is 1.77 times less risky than Jaguar Animal. It trades about -0.25 of its potential returns per unit of risk. Jaguar Animal Health is currently generating about -0.26 per unit of risk. If you would invest  244.00  in GeoVax Labs on December 28, 2024 and sell it today you would lose (133.00) from holding GeoVax Labs or give up 54.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

GeoVax Labs  vs.  Jaguar Animal Health

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.

Jaguar Animal Health

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's technical and fundamental 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 GeoVax Labs and Jaguar Animal

The main advantage of trading using opposite GeoVax Labs and Jaguar Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GeoVax Labs 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 GeoVax Labs 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.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.