Correlation Between Jaguar Animal and Vaxart

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

Diversification Opportunities for Jaguar Animal and Vaxart

0.77

Correlation Coefficient

Jaguar Animal  Vaxart

Poor diversification

The 3 months correlation between Jaguar and Vaxart is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Animal Health and Vaxart Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxart Inc 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 Vaxart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxart Inc has no effect on the direction of Jaguar Animal i.e., Jaguar Animal and Vaxart go up and down completely randomly.

Pair Corralation between Jaguar Animal and Vaxart

Given the investment horizon of 90 days Jaguar Animal Health is expected to generate 1.86 times more return on investment than Vaxart. However, Jaguar Animal is 1.86 times more volatile than Vaxart Inc. It trades about 0.04 of its potential returns per unit of risk. Vaxart Inc is currently generating about 0.02 per unit of risk. If you would invest  103.00  in Jaguar Animal Health on September 26, 2024 and sell it today you would earn a total of  0.00  from holding Jaguar Animal Health or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Jaguar Animal Health  vs.  Vaxart Inc

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 latest stock price disturbance, may contribute to short-term losses for the investors.

Vaxart Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vaxart Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Jaguar Animal and Vaxart

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

The idea behind Jaguar Animal Health and Vaxart Inc 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.