Correlation Between Leap Therapeutics and Jaguar Animal
Can any of the company-specific risk be diversified away by investing in both Leap Therapeutics 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 Leap Therapeutics and Jaguar Animal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leap Therapeutics and Jaguar Animal Health, you can compare the effects of market volatilities on Leap Therapeutics 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 Leap Therapeutics with a short position of Jaguar Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leap Therapeutics and Jaguar Animal.
Diversification Opportunities for Leap Therapeutics and Jaguar Animal
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Leap and Jaguar is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Leap Therapeutics 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 Leap 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 Leap Therapeutics 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 Leap Therapeutics i.e., Leap Therapeutics and Jaguar Animal go up and down completely randomly.
Pair Corralation between Leap Therapeutics and Jaguar Animal
Given the investment horizon of 90 days Leap Therapeutics is expected to under-perform the Jaguar Animal. In addition to that, Leap Therapeutics is 2.97 times more volatile than Jaguar Animal Health. It trades about -0.3 of its total potential returns per unit of risk. Jaguar Animal Health is currently generating about 0.0 per unit of volatility. If you would invest 89.00 in Jaguar Animal Health on November 27, 2024 and sell it today you would lose (3.00) from holding Jaguar Animal Health or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leap Therapeutics vs. Jaguar Animal Health
Performance |
| Timeline |
| Leap Therapeutics |
| Jaguar Animal Health |
Leap Therapeutics and Jaguar Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leap Therapeutics and Jaguar Animal
The main advantage of trading using opposite Leap Therapeutics and Jaguar Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leap Therapeutics 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.| Leap Therapeutics vs. X4 Pharmaceuticals | Leap Therapeutics vs. Terns Pharmaceuticals | Leap Therapeutics vs. Day One Biopharmaceuticals | Leap Therapeutics vs. PDS Biotechnology Corp |
| Jaguar Animal vs. Ibio Inc | Jaguar Animal vs. GeoVax Labs | Jaguar Animal vs. Ocugen Inc | Jaguar Animal vs. Zura Bio Limited |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges |