Correlation Between Zura Bio and GeoVax Labs
Can any of the company-specific risk be diversified away by investing in both Zura Bio 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 Zura Bio and GeoVax Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zura Bio Limited and GeoVax Labs, you can compare the effects of market volatilities on Zura Bio 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 Zura Bio with a short position of GeoVax Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zura Bio and GeoVax Labs.
Diversification Opportunities for Zura Bio and GeoVax Labs
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zura and GeoVax is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Zura Bio Limited and GeoVax Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeoVax Labs and Zura Bio 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 Zura Bio Limited 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 Zura Bio i.e., Zura Bio and GeoVax Labs go up and down completely randomly.
Pair Corralation between Zura Bio and GeoVax Labs
Given the investment horizon of 90 days Zura Bio is expected to generate 5.17 times less return on investment than GeoVax Labs. But when comparing it to its historical volatility, Zura Bio Limited is 2.78 times less risky than GeoVax Labs. It trades about 0.02 of its potential returns per unit of risk. GeoVax Labs is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,205 in GeoVax Labs on August 25, 2024 and sell it today you would lose (910.00) from holding GeoVax Labs or give up 75.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.89% |
| Values | Daily Returns |
Zura Bio Limited vs. GeoVax Labs
Performance |
| Timeline |
| Zura Bio Limited |
| GeoVax Labs |
Zura Bio and GeoVax Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zura Bio and GeoVax Labs
The main advantage of trading using opposite Zura Bio and GeoVax Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zura Bio 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.| Zura Bio vs. Lipocine | Zura Bio vs. Tritent International Agriculture | Zura Bio vs. Park Ohio Holdings | Zura Bio vs. Nuvalent |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |