Correlation Between Maxigen Biotech and Jourdeness

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

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

Diversification Opportunities for Maxigen Biotech and Jourdeness

-0.52

Correlation Coefficient

Maxigen Biotech  Jourdeness

Excellent diversification

The 3 months correlation between Maxigen and Jourdeness is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Maxigen Biotech and Jourdeness Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jourdeness Group and Maxigen Biotech 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 Maxigen Biotech are associated (or correlated) with Jourdeness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jourdeness Group has no effect on the direction of Maxigen Biotech i.e., Maxigen Biotech and Jourdeness go up and down completely randomly.

Pair Corralation between Maxigen Biotech and Jourdeness

Assuming the 90 days trading horizon Maxigen Biotech is expected to generate 1.12 times less return on investment than Jourdeness. But when comparing it to its historical volatility, Maxigen Biotech is 1.74 times less risky than Jourdeness. It trades about 0.04 of its potential returns per unit of risk. Jourdeness Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  4,675  in Jourdeness Group on September 12, 2024 and sell it today you would earn a total of  120.00  from holding Jourdeness Group or generate 2.57% return on investment over 90 days.

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

Maxigen Biotech  vs.  Jourdeness Group

Maxigen Biotech

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Maxigen Biotech are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Maxigen Biotech is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Jourdeness Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jourdeness Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Jourdeness is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Maxigen Biotech and Jourdeness

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

The idea behind Maxigen Biotech and Jourdeness Group 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.