Correlation Between Vaalco Energy and Longeveron LLC

Can any of the company-specific risk be diversified away by investing in both Vaalco Energy and Longeveron LLC 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 Vaalco Energy and Longeveron LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vaalco Energy and Longeveron LLC, you can compare the effects of market volatilities on Vaalco Energy and Longeveron LLC 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 Vaalco Energy with a short position of Longeveron LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vaalco Energy and Longeveron LLC.

Diversification Opportunities for Vaalco Energy and Longeveron LLC

0.23

Correlation Coefficient

Vaalco Energy  Longeveron LLC

Modest diversification

The 3 months correlation between Vaalco and Longeveron is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Vaalco Energy and Longeveron LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longeveron LLC and Vaalco Energy 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 Vaalco Energy are associated (or correlated) with Longeveron LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longeveron LLC has no effect on the direction of Vaalco Energy i.e., Vaalco Energy and Longeveron LLC go up and down completely randomly.

Pair Corralation between Vaalco Energy and Longeveron LLC

Considering the 90-day investment horizon Vaalco Energy is expected to generate 1.33 times less return on investment than Longeveron LLC. But when comparing it to its historical volatility, Vaalco Energy is 1.95 times less risky than Longeveron LLC. It trades about 0.1 of its potential returns per unit of risk. Longeveron LLC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  149.00  in Longeveron LLC on May 7, 2025 and sell it today you would earn a total of  22.00  from holding Longeveron LLC or generate 14.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Vaalco Energy  vs.  Longeveron LLC

Vaalco Energy

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Vaalco Energy are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Vaalco Energy showed solid returns over the last few months and may actually be approaching a breakup point.

Longeveron LLC

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Longeveron LLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Longeveron LLC displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vaalco Energy and Longeveron LLC

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

The idea behind Vaalco Energy and Longeveron LLC 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.