Correlation Between GeoVax Labs and Cingulate Warrants

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

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

Diversification Opportunities for GeoVax Labs and Cingulate Warrants

0.59

Correlation Coefficient

GeoVax Labs  Cingulate Warrants

Very weak diversification

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

Pair Corralation between GeoVax Labs and Cingulate Warrants

Assuming the 90 days horizon GeoVax Labs is expected to under-perform the Cingulate Warrants. But the stock apears to be less risky and, when comparing its historical volatility, GeoVax Labs is 1.12 times less risky than Cingulate Warrants. The stock trades about -0.01 of its potential returns per unit of risk. The Cingulate Warrants is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  8.00  in Cingulate Warrants on September 16, 2024 and sell it today you would lose (4.10) from holding Cingulate Warrants or give up 51.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

GeoVax Labs  vs.  Cingulate Warrants

GeoVax Labs

Risk-Adjusted Performance

0 of 100

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 latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Cingulate Warrants

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with GeoVax Labs and Cingulate Warrants

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

The idea behind GeoVax Labs and Cingulate Warrants 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 Stocks Directory module to find actively traded stocks across global markets.