Correlation Between Expand Energy and Jasper Therapeutics
Can any of the company-specific risk be diversified away by investing in both Expand Energy and Jasper Therapeutics 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 Expand Energy and Jasper Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expand Energy and Jasper Therapeutics, you can compare the effects of market volatilities on Expand Energy and Jasper Therapeutics 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 Expand Energy with a short position of Jasper Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and Jasper Therapeutics.
Diversification Opportunities for Expand Energy and Jasper Therapeutics
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Expand and Jasper is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and Jasper Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasper Therapeutics and Expand Energy 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 Expand Energy are associated (or correlated) with Jasper Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasper Therapeutics has no effect on the direction of Expand Energy i.e., Expand Energy and Jasper Therapeutics go up and down completely randomly.
Pair Corralation between Expand Energy and Jasper Therapeutics
Assuming the 90 days horizon Expand Energy is expected to generate 0.15 times more return on investment than Jasper Therapeutics. However, Expand Energy is 6.71 times less risky than Jasper Therapeutics. It trades about 0.33 of its potential returns per unit of risk. Jasper Therapeutics is currently generating about -0.02 per unit of risk. If you would invest 8,963 in Expand Energy on November 4, 2024 and sell it today you would earn a total of 1,169 from holding Expand Energy or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expand Energy vs. Jasper Therapeutics
Performance |
| Timeline |
| Expand Energy |
| Jasper Therapeutics |
Expand Energy and Jasper Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and Jasper Therapeutics
The main advantage of trading using opposite Expand Energy and Jasper Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy position performs unexpectedly, Jasper Therapeutics 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 Jasper Therapeutics will offset losses from the drop in Jasper Therapeutics' long position.| Expand Energy vs. Grupo Aeroportuario del | Expand Energy vs. Mako Mining Corp | Expand Energy vs. ioneer Ltd American | Expand Energy vs. Harmony Gold Mining |
| Jasper Therapeutics vs. SAB Biotherapeutics | Jasper Therapeutics vs. NRx Pharmaceuticals | Jasper Therapeutics vs. Celularity |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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