Correlation Between Jaguar Animal and Asensus Surgical

Can any of the company-specific risk be diversified away by investing in both Jaguar Animal and Asensus Surgical 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 Asensus Surgical 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 Asensus Surgical, you can compare the effects of market volatilities on Jaguar Animal and Asensus Surgical 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 Asensus Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaguar Animal and Asensus Surgical.

Diversification Opportunities for Jaguar Animal and Asensus Surgical

0.15

Correlation Coefficient

Jaguar Animal  Asensus Surgical

Average diversification

The 3 months correlation between Jaguar and Asensus is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Animal Health and Asensus Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asensus Surgical 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 Asensus Surgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asensus Surgical has no effect on the direction of Jaguar Animal i.e., Jaguar Animal and Asensus Surgical go up and down completely randomly.

Pair Corralation between Jaguar Animal and Asensus Surgical

Given the investment horizon of 90 days Jaguar Animal Health is expected to under-perform the Asensus Surgical. In addition to that, Jaguar Animal is 1.23 times more volatile than Asensus Surgical. It trades about -0.04 of its total potential returns per unit of risk. Asensus Surgical is currently generating about -0.02 per unit of volatility. If you would invest  28.00  in Asensus Surgical on September 12, 2024 and sell it today you would lose (28.00) from holding Asensus Surgical or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	77.34%
Values	Daily Returns

Jaguar Animal Health  vs.  Asensus Surgical

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 fairly strong technical and fundamental indicators, Jaguar Animal is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Asensus Surgical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asensus Surgical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Asensus Surgical is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Jaguar Animal and Asensus Surgical

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

The idea behind Jaguar Animal Health and Asensus Surgical 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.