Correlation Between NYSE Composite and GeoVax Labs
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and GeoVax Labs 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 NYSE Composite and GeoVax Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and GeoVax Labs, you can compare the effects of market volatilities on NYSE Composite and GeoVax Labs 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 NYSE Composite with a short position of GeoVax Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and GeoVax Labs.
Diversification Opportunities for NYSE Composite and GeoVax Labs
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and GeoVax is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and GeoVax Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeoVax Labs and NYSE Composite 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 NYSE Composite are associated (or correlated) with GeoVax Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GeoVax Labs has no effect on the direction of NYSE Composite i.e., NYSE Composite and GeoVax Labs go up and down completely randomly.
Pair Corralation between NYSE Composite and GeoVax Labs
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.19 times less return on investment than GeoVax Labs. But when comparing it to its historical volatility, NYSE Composite is 18.51 times less risky than GeoVax Labs. It trades about 0.17 of its potential returns per unit of risk. GeoVax Labs is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 739.00 in GeoVax Labs on August 25, 2024 and sell it today you would lose (444.00) from holding GeoVax Labs or give up 60.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. GeoVax Labs
Performance |
| Timeline |
NYSE Composite and GeoVax Labs Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
GeoVax Labs
Pair trading matchups for GeoVax Labs
Pair Trading with NYSE Composite and GeoVax Labs
The main advantage of trading using opposite NYSE Composite and GeoVax Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, GeoVax Labs 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 GeoVax Labs will offset losses from the drop in GeoVax Labs' long position.| NYSE Composite vs. Glacier Bancorp | NYSE Composite vs. LithiumBank Resources Corp | NYSE Composite vs. Stepstone Group | NYSE Composite vs. Pintec Technology Holdings |
| GeoVax Labs vs. Zura Bio Limited | GeoVax Labs vs. ZyVersa Therapeutics | GeoVax Labs vs. Phio Pharmaceuticals Corp | GeoVax Labs vs. Sonnet Biotherapeutics Holdings |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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