Correlation Between Ocugen and Jaguar Animal

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

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

Diversification Opportunities for Ocugen and Jaguar Animal

0.05

Correlation Coefficient

Ocugen  Jaguar Animal

Significant diversification

The 3 months correlation between Ocugen and Jaguar is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ocugen Inc and Jaguar Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Animal Health and Ocugen 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 Ocugen Inc are associated (or correlated) with Jaguar Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Animal Health has no effect on the direction of Ocugen i.e., Ocugen and Jaguar Animal go up and down completely randomly.

Pair Corralation between Ocugen and Jaguar Animal

Given the investment horizon of 90 days Ocugen Inc is expected to under-perform the Jaguar Animal. But the stock apears to be less risky and, when comparing its historical volatility, Ocugen Inc is 1.13 times less risky than Jaguar Animal. The stock trades about -0.08 of its potential returns per unit of risk. The Jaguar Animal Health is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  112.00  in Jaguar Animal Health on September 5, 2024 and sell it today you would lose (11.00) from holding Jaguar Animal Health or give up 9.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Ocugen Inc  vs.  Jaguar Animal Health

Ocugen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ocugen Inc 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 very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

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.

Pair Trading with Ocugen and Jaguar Animal

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

The idea behind Ocugen Inc and Jaguar Animal 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.

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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.