Correlation Between GeoVax Labs and Zivo Bioscience

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

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

Diversification Opportunities for GeoVax Labs and Zivo Bioscience

0.6

Correlation Coefficient

GeoVax Labs  Zivo Bioscience

Poor diversification

The 3 months correlation between GeoVax and Zivo is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding GeoVax Labs and Zivo Bioscience Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zivo Bioscience 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 Zivo Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zivo Bioscience Warrants has no effect on the direction of GeoVax Labs i.e., GeoVax Labs and Zivo Bioscience go up and down completely randomly.

Pair Corralation between GeoVax Labs and Zivo Bioscience

If you would invest  11.00  in GeoVax Labs on September 12, 2024 and sell it today you would earn a total of  0.22  from holding GeoVax Labs or generate 2.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	4.55%
Values	Daily Returns

GeoVax Labs  vs.  Zivo Bioscience 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 weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Zivo Bioscience Warrants

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zivo Bioscience Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Zivo Bioscience 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 Zivo Bioscience

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

The idea behind GeoVax Labs and Zivo Bioscience 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.