Correlation Between Jasper Therapeutics and Mind Cure

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

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

Diversification Opportunities for Jasper Therapeutics and Mind Cure

0.02

Correlation Coefficient

Jasper Therapeutics  Mind Cure

Significant diversification

The 3 months correlation between Jasper and Mind is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Jasper Therapeutics and Mind Cure Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mind Cure Health and Jasper Therapeutics 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 Jasper Therapeutics are associated (or correlated) with Mind Cure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mind Cure Health has no effect on the direction of Jasper Therapeutics i.e., Jasper Therapeutics and Mind Cure go up and down completely randomly.

Pair Corralation between Jasper Therapeutics and Mind Cure

If you would invest  19.00  in Jasper Therapeutics on September 13, 2024 and sell it today you would earn a total of  3.00  from holding Jasper Therapeutics or generate 15.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.96%
Values	Daily Returns

Jasper Therapeutics  vs.  Mind Cure Health

Jasper Therapeutics

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jasper Therapeutics are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Jasper Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Mind Cure Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mind Cure Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Mind Cure is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Jasper Therapeutics and Mind Cure

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

The idea behind Jasper Therapeutics and Mind Cure Health 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.