Correlation Between Jasper Therapeutics and LianBio ADR
Can any of the company-specific risk be diversified away by investing in both Jasper Therapeutics and LianBio ADR 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 LianBio ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jasper Therapeutics and LianBio ADR, you can compare the effects of market volatilities on Jasper Therapeutics and LianBio ADR 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 LianBio ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasper Therapeutics and LianBio ADR.
Diversification Opportunities for Jasper Therapeutics and LianBio ADR
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jasper and LianBio is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jasper Therapeutics and LianBio ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianBio ADR 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 LianBio ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianBio ADR has no effect on the direction of Jasper Therapeutics i.e., Jasper Therapeutics and LianBio ADR go up and down completely randomly.
Pair Corralation between Jasper Therapeutics and LianBio ADR
If you would invest 2,118 in Jasper Therapeutics on September 1, 2024 and sell it today you would earn a total of 163.00 from holding Jasper Therapeutics or generate 7.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Jasper Therapeutics vs. LianBio ADR
Performance |
| Timeline |
| Jasper Therapeutics |
| LianBio ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jasper Therapeutics and LianBio ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasper Therapeutics and LianBio ADR
The main advantage of trading using opposite Jasper Therapeutics and LianBio ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasper Therapeutics position performs unexpectedly, LianBio ADR 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 LianBio ADR will offset losses from the drop in LianBio ADR's long position.| Jasper Therapeutics vs. Lyra Therapeutics | Jasper Therapeutics vs. Equillium | Jasper Therapeutics vs. Hookipa Pharma | Jasper Therapeutics vs. Acumen Pharmaceuticals |
| LianBio ADR vs. Sensei Biotherapeutics | LianBio ADR vs. NextCure | LianBio ADR vs. Nuvation Bio | LianBio ADR vs. Inozyme Pharma |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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