Correlation Between Onconova Therapeutics and Jaguar Animal
Can any of the company-specific risk be diversified away by investing in both Onconova 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 Onconova 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 Onconova Therapeutics and Jaguar Animal Health, you can compare the effects of market volatilities on Onconova 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 Onconova Therapeutics with a short position of Jaguar Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onconova Therapeutics and Jaguar Animal.
Diversification Opportunities for Onconova Therapeutics and Jaguar Animal
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Onconova and Jaguar is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Onconova 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 Onconova 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 Onconova 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 Onconova Therapeutics i.e., Onconova Therapeutics and Jaguar Animal go up and down completely randomly.
Pair Corralation between Onconova Therapeutics and Jaguar Animal
Given the investment horizon of 90 days Onconova Therapeutics is expected to generate 0.77 times more return on investment than Jaguar Animal. However, Onconova Therapeutics is 1.29 times less risky than Jaguar Animal. It trades about 0.06 of its potential returns per unit of risk. Jaguar Animal Health is currently generating about -0.08 per unit of risk. If you would invest 76.00 in Onconova Therapeutics on August 29, 2024 and sell it today you would earn a total of 26.00 from holding Onconova Therapeutics or generate 34.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.45% |
| Values | Daily Returns |
Onconova Therapeutics vs. Jaguar Animal Health
Performance |
| Timeline |
| Onconova Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jaguar Animal Health |
Onconova Therapeutics and Jaguar Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onconova Therapeutics and Jaguar Animal
The main advantage of trading using opposite Onconova Therapeutics and Jaguar Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onconova 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.| Onconova Therapeutics vs. Jaguar Animal Health | Onconova Therapeutics vs. Ibio Inc | Onconova Therapeutics vs. GeoVax Labs | Onconova Therapeutics vs. Ocugen Inc |
| 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |