Correlation Between Jaguar Animal and Senseonics Holdings
Can any of the company-specific risk be diversified away by investing in both Jaguar Animal and Senseonics Holdings 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 Senseonics Holdings 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 Senseonics Holdings, you can compare the effects of market volatilities on Jaguar Animal and Senseonics Holdings 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 Senseonics Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaguar Animal and Senseonics Holdings.
Diversification Opportunities for Jaguar Animal and Senseonics Holdings
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jaguar and Senseonics is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Animal Health and Senseonics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senseonics Holdings 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 Senseonics Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senseonics Holdings has no effect on the direction of Jaguar Animal i.e., Jaguar Animal and Senseonics Holdings go up and down completely randomly.
Pair Corralation between Jaguar Animal and Senseonics Holdings
Given the investment horizon of 90 days Jaguar Animal Health is expected to generate 1.23 times more return on investment than Senseonics Holdings. However, Jaguar Animal is 1.23 times more volatile than Senseonics Holdings. It trades about -0.02 of its potential returns per unit of risk. Senseonics Holdings is currently generating about -0.07 per unit of risk. If you would invest 106.00 in Jaguar Animal Health on August 31, 2024 and sell it today you would lose (6.00) from holding Jaguar Animal Health or give up 5.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaguar Animal Health vs. Senseonics Holdings
Performance |
| Timeline |
| Jaguar Animal Health |
| Senseonics Holdings |
Jaguar Animal and Senseonics Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaguar Animal and Senseonics Holdings
The main advantage of trading using opposite Jaguar Animal and Senseonics Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaguar Animal position performs unexpectedly, Senseonics Holdings 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 Senseonics Holdings will offset losses from the drop in Senseonics Holdings' long position.| Jaguar Animal vs. Ibio Inc | Jaguar Animal vs. GeoVax Labs | Jaguar Animal vs. Ocugen Inc | Jaguar Animal vs. Zura Bio Limited |
| Senseonics Holdings vs. Insulet | Senseonics Holdings vs. Tandem Diabetes Care | Senseonics Holdings vs. Abbott Laboratories | Senseonics Holdings vs. Align Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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