Correlation Between Janux Therapeutics and Core One

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

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

Diversification Opportunities for Janux Therapeutics and Core One

0.05

Correlation Coefficient

Janux Therapeutics  Core One

Significant diversification

The 3 months correlation between Janux and Core is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Janux Therapeutics and Core One Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core One Labs and Janux 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 Janux Therapeutics are associated (or correlated) with Core One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core One Labs has no effect on the direction of Janux Therapeutics i.e., Janux Therapeutics and Core One go up and down completely randomly.

Pair Corralation between Janux Therapeutics and Core One

Given the investment horizon of 90 days Janux Therapeutics is expected to generate 30.11 times less return on investment than Core One. But when comparing it to its historical volatility, Janux Therapeutics is 19.7 times less risky than Core One. It trades about 0.09 of its potential returns per unit of risk. Core One Labs is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  5.36  in Core One Labs on May 2, 2025 and sell it today you would lose (3.14) from holding Core One Labs or give up 58.58% of portfolio value over 90 days.

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

Janux Therapeutics  vs.  Core One Labs

Janux Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Janux Therapeutics 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 basic indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Core One Labs

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Core One Labs are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental drivers, Core One reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Janux Therapeutics and Core One

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

The idea behind Janux Therapeutics and Core One Labs 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.