Correlation Between GeoVax Labs and Onconova Therapeutics
Can any of the company-specific risk be diversified away by investing in both GeoVax Labs and Onconova 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 GeoVax Labs and Onconova Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GeoVax Labs and Onconova Therapeutics, you can compare the effects of market volatilities on GeoVax Labs and Onconova 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 GeoVax Labs with a short position of Onconova Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GeoVax Labs and Onconova Therapeutics.
Diversification Opportunities for GeoVax Labs and Onconova Therapeutics
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GeoVax and Onconova is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding GeoVax Labs and Onconova Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onconova Therapeutics and GeoVax Labs 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 GeoVax Labs are associated (or correlated) with Onconova Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onconova Therapeutics has no effect on the direction of GeoVax Labs i.e., GeoVax Labs and Onconova Therapeutics go up and down completely randomly.
Pair Corralation between GeoVax Labs and Onconova Therapeutics
Given the investment horizon of 90 days GeoVax Labs is expected to generate 6.19 times more return on investment than Onconova Therapeutics. However, GeoVax Labs is 6.19 times more volatile than Onconova Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Onconova Therapeutics is currently generating about 0.05 per unit of risk. If you would invest 1,205 in GeoVax Labs on August 26, 2024 and sell it today you would lose (910.00) from holding GeoVax Labs or give up 75.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.99% |
| Values | Daily Returns |
GeoVax Labs vs. Onconova Therapeutics
Performance |
| Timeline |
| GeoVax Labs |
| Onconova Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GeoVax Labs and Onconova Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GeoVax Labs and Onconova Therapeutics
The main advantage of trading using opposite GeoVax Labs and Onconova Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GeoVax Labs position performs unexpectedly, Onconova 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 Onconova Therapeutics will offset losses from the drop in Onconova Therapeutics' long position.| GeoVax Labs vs. Zura Bio Limited | GeoVax Labs vs. ZyVersa Therapeutics | GeoVax Labs vs. Phio Pharmaceuticals Corp | GeoVax Labs vs. Sonnet Biotherapeutics Holdings |
| Onconova Therapeutics vs. Jaguar Animal Health | Onconova Therapeutics vs. Ibio Inc | Onconova Therapeutics vs. GeoVax Labs | Onconova Therapeutics vs. Ocugen Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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