Correlation Between Red Light and Jasper Therapeutics

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

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

Diversification Opportunities for Red Light and Jasper Therapeutics

0.52

Correlation Coefficient

Red Light  Jasper Therapeutics

Very weak diversification

The 3 months correlation between Red and Jasper is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Red Light Holland and Jasper Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasper Therapeutics and Red Light 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 Red Light Holland 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 Red Light i.e., Red Light and Jasper Therapeutics go up and down completely randomly.

Pair Corralation between Red Light and Jasper Therapeutics

Assuming the 90 days horizon Red Light Holland is expected to generate 0.73 times more return on investment than Jasper Therapeutics. However, Red Light Holland is 1.37 times less risky than Jasper Therapeutics. It trades about 0.1 of its potential returns per unit of risk. Jasper Therapeutics is currently generating about 0.03 per unit of risk. If you would invest  2.10  in Red Light Holland on May 27, 2025 and sell it today you would earn a total of  0.80  from holding Red Light Holland or generate 38.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	61.9%
Values	Daily Returns

Red Light Holland  vs.  Jasper Therapeutics

Red Light Holland

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Red Light Holland are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Red Light reported solid returns over the last few months and may actually be approaching a breakup point.

Jasper Therapeutics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jasper Therapeutics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Jasper Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Red Light and Jasper Therapeutics

The main advantage of trading using opposite Red Light and Jasper Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Red Light 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 Red Light Holland 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.