Correlation Between Protagenic Therapeutics and Jasper Therapeutics

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Can any of the company-specific risk be diversified away by investing in both Protagenic Therapeutics and Jasper Therapeutics 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 Protagenic Therapeutics and Jasper Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protagenic Therapeutics and Jasper Therapeutics, you can compare the effects of market volatilities on Protagenic Therapeutics and Jasper Therapeutics 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 Protagenic Therapeutics with a short position of Jasper Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protagenic Therapeutics and Jasper Therapeutics.

Diversification Opportunities for Protagenic Therapeutics and Jasper Therapeutics

-0.5
  Correlation Coefficient

Very good diversification

The 3 months correlation between Protagenic and Jasper is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Protagenic Therapeutics and Jasper Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasper Therapeutics and Protagenic 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 Protagenic Therapeutics are associated (or correlated) with Jasper Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasper Therapeutics has no effect on the direction of Protagenic Therapeutics i.e., Protagenic Therapeutics and Jasper Therapeutics go up and down completely randomly.

Pair Corralation between Protagenic Therapeutics and Jasper Therapeutics

Given the investment horizon of 90 days Protagenic Therapeutics is expected to generate 25.28 times less return on investment than Jasper Therapeutics. In addition to that, Protagenic Therapeutics is 1.02 times more volatile than Jasper Therapeutics. It trades about 0.01 of its total potential returns per unit of risk. Jasper Therapeutics is currently generating about 0.14 per unit of volatility. If you would invest  8.50  in Jasper Therapeutics on August 18, 2025 and sell it today you would earn a total of  4.50  from holding Jasper Therapeutics or generate 52.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy64.62%
ValuesDaily Returns

Protagenic Therapeutics  vs.  Jasper Therapeutics

 Performance 
       Timeline  
Protagenic Therapeutics 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Protagenic Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Protagenic Therapeutics is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Jasper Therapeutics 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Jasper Therapeutics are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Jasper Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Protagenic Therapeutics and Jasper Therapeutics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Protagenic Therapeutics and Jasper Therapeutics

The main advantage of trading using opposite Protagenic Therapeutics and Jasper Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protagenic Therapeutics position performs unexpectedly, Jasper Therapeutics 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 Jasper Therapeutics will offset losses from the drop in Jasper Therapeutics' long position.
The idea behind Protagenic Therapeutics and Jasper Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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