Correlation Between Jaguar Animal and Biodexa Pharmaceticals
Can any of the company-specific risk be diversified away by investing in both Jaguar Animal and Biodexa Pharmaceticals 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 Jaguar Animal and Biodexa Pharmaceticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaguar Animal Health and Biodexa Pharmaceticals, you can compare the effects of market volatilities on Jaguar Animal and Biodexa Pharmaceticals 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 Jaguar Animal with a short position of Biodexa Pharmaceticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaguar Animal and Biodexa Pharmaceticals.
Diversification Opportunities for Jaguar Animal and Biodexa Pharmaceticals
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jaguar and Biodexa is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Animal Health and Biodexa Pharmaceticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biodexa Pharmaceticals and Jaguar Animal 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 Jaguar Animal Health are associated (or correlated) with Biodexa Pharmaceticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biodexa Pharmaceticals has no effect on the direction of Jaguar Animal i.e., Jaguar Animal and Biodexa Pharmaceticals go up and down completely randomly.
Pair Corralation between Jaguar Animal and Biodexa Pharmaceticals
Given the investment horizon of 90 days Jaguar Animal Health is expected to under-perform the Biodexa Pharmaceticals. But the stock apears to be less risky and, when comparing its historical volatility, Jaguar Animal Health is 1.71 times less risky than Biodexa Pharmaceticals. The stock trades about -0.04 of its potential returns per unit of risk. The Biodexa Pharmaceticals is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 724.00 in Biodexa Pharmaceticals on August 17, 2025 and sell it today you would lose (176.00) from holding Biodexa Pharmaceticals or give up 24.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaguar Animal Health vs. Biodexa Pharmaceticals
Performance |
| Timeline |
| Jaguar Animal Health |
| Biodexa Pharmaceticals |
Jaguar Animal and Biodexa Pharmaceticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaguar Animal and Biodexa Pharmaceticals
The main advantage of trading using opposite Jaguar Animal and Biodexa Pharmaceticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaguar Animal position performs unexpectedly, Biodexa Pharmaceticals 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 Biodexa Pharmaceticals will offset losses from the drop in Biodexa Pharmaceticals' long position.| Jaguar Animal vs. GRI Bio | Jaguar Animal vs. Cns Pharmaceuticals | Jaguar Animal vs. Biodexa Pharmaceticals | Jaguar Animal vs. Silo Pharma |
| Biodexa Pharmaceticals vs. InMed Pharmaceuticals | Biodexa Pharmaceticals vs. Genprex | Biodexa Pharmaceticals vs. GRI Bio | Biodexa Pharmaceticals vs. Jaguar Animal Health |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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