Correlation Between GeoVax Labs and ZyVersa Therapeutics

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

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

Diversification Opportunities for GeoVax Labs and ZyVersa Therapeutics

0.59

Correlation Coefficient

GeoVax Labs  ZyVersa Therapeutics

Very weak diversification

The 3 months correlation between GeoVax and ZyVersa is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding GeoVax Labs and ZyVersa Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZyVersa Therapeutics 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 ZyVersa Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZyVersa Therapeutics has no effect on the direction of GeoVax Labs i.e., GeoVax Labs and ZyVersa Therapeutics go up and down completely randomly.

Pair Corralation between GeoVax Labs and ZyVersa Therapeutics

Given the investment horizon of 90 days GeoVax Labs is expected to under-perform the ZyVersa Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, GeoVax Labs is 1.43 times less risky than ZyVersa Therapeutics. The stock trades about -0.22 of its potential returns per unit of risk. The ZyVersa Therapeutics is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  107.00  in ZyVersa Therapeutics on December 29, 2024 and sell it today you would lose (46.00) from holding ZyVersa Therapeutics or give up 42.99% of portfolio value over 90 days.

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

GeoVax Labs  vs.  ZyVersa Therapeutics

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 unfluctuating 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.

ZyVersa Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZyVersa Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat 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 ZyVersa Therapeutics

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

The idea behind GeoVax Labs and ZyVersa Therapeutics 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.