Correlation Between Generation Bio and Jasper Therapeutics

Can any of the company-specific risk be diversified away by investing in both Generation Bio 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 Generation Bio and Jasper Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Generation Bio Co and Jasper Therapeutics, you can compare the effects of market volatilities on Generation Bio 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 Generation Bio with a short position of Jasper Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Bio and Jasper Therapeutics.

Diversification Opportunities for Generation Bio and Jasper Therapeutics

0.84

Correlation Coefficient

Generation Bio  Jasper Therapeutics

Very poor diversification

The 3 months correlation between Generation and Jasper is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Generation Bio Co and Jasper Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasper Therapeutics and Generation 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 Generation Bio Co 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 Generation Bio i.e., Generation Bio and Jasper Therapeutics go up and down completely randomly.

Pair Corralation between Generation Bio and Jasper Therapeutics

Given the investment horizon of 90 days Generation Bio Co is expected to under-perform the Jasper Therapeutics. In addition to that, Generation Bio is 1.04 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 0.0 per unit of volatility. If you would invest  578.00  in Jasper Therapeutics on September 13, 2025 and sell it today you would lose (401.00) from holding Jasper Therapeutics or give up 69.38% of portfolio value over 90 days.

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

Generation Bio Co  vs.  Jasper Therapeutics

Generation Bio

Risk-Adjusted Performance

Weakest

Over the last 90 days Generation Bio Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Generation Bio is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Jasper Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Jasper Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Generation Bio and Jasper Therapeutics

The main advantage of trading using opposite Generation Bio and Jasper Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generation Bio 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 Generation Bio Co 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.