Correlation Between Jaguar Animal and Bionano Genomics

Can any of the company-specific risk be diversified away by investing in both Jaguar Animal and Bionano Genomics 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 Bionano Genomics 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 Bionano Genomics, you can compare the effects of market volatilities on Jaguar Animal and Bionano Genomics 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 Bionano Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaguar Animal and Bionano Genomics.

Diversification Opportunities for Jaguar Animal and Bionano Genomics

0.42

Correlation Coefficient

Jaguar Animal  Bionano Genomics

Very weak diversification

The 3 months correlation between Jaguar and Bionano is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Animal Health and Bionano Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionano Genomics 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 Bionano Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionano Genomics has no effect on the direction of Jaguar Animal i.e., Jaguar Animal and Bionano Genomics go up and down completely randomly.

Pair Corralation between Jaguar Animal and Bionano Genomics

Given the investment horizon of 90 days Jaguar Animal Health is expected to under-perform the Bionano Genomics. In addition to that, Jaguar Animal is 1.44 times more volatile than Bionano Genomics. It trades about -0.11 of its total potential returns per unit of risk. Bionano Genomics is currently generating about 0.02 per unit of volatility. If you would invest  395.00  in Bionano Genomics on March 4, 2025 and sell it today you would lose (28.00) from holding Bionano Genomics or give up 7.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Jaguar Animal Health  vs.  Bionano Genomics

Jaguar Animal Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jaguar Animal Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in July 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Bionano Genomics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bionano Genomics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Bionano Genomics may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Jaguar Animal and Bionano Genomics

The main advantage of trading using opposite Jaguar Animal and Bionano Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaguar Animal position performs unexpectedly, Bionano Genomics 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 Bionano Genomics will offset losses from the drop in Bionano Genomics' long position.

The idea behind Jaguar Animal Health and Bionano Genomics 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.