Correlation Between Jaguar Animal and Pulmatrix

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

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

Diversification Opportunities for Jaguar Animal and Pulmatrix

-0.57

Correlation Coefficient

Jaguar Animal  Pulmatrix

Excellent diversification

The 3 months correlation between Jaguar and Pulmatrix is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Animal Health and Pulmatrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulmatrix and Jaguar Animal 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 Jaguar Animal Health are associated (or correlated) with Pulmatrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulmatrix has no effect on the direction of Jaguar Animal i.e., Jaguar Animal and Pulmatrix go up and down completely randomly.

Pair Corralation between Jaguar Animal and Pulmatrix

Given the investment horizon of 90 days Jaguar Animal Health is expected to under-perform the Pulmatrix. But the stock apears to be less risky and, when comparing its historical volatility, Jaguar Animal Health is 1.81 times less risky than Pulmatrix. The stock trades about -0.03 of its potential returns per unit of risk. The Pulmatrix is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  218.00  in Pulmatrix on September 17, 2024 and sell it today you would earn a total of  357.00  from holding Pulmatrix or generate 163.76% return on investment over 90 days.

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

Jaguar Animal Health  vs.  Pulmatrix

Jaguar Animal Health

Risk-Adjusted Performance

0 of 100

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 January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pulmatrix

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pulmatrix are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain essential indicators, Pulmatrix displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jaguar Animal and Pulmatrix

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

The idea behind Jaguar Animal Health and Pulmatrix 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.