Correlation Between Cellectis and Spineguard
Can any of the company-specific risk be diversified away by investing in both Cellectis and Spineguard 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 Cellectis and Spineguard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellectis and Spineguard, you can compare the effects of market volatilities on Cellectis and Spineguard 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 Cellectis with a short position of Spineguard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellectis and Spineguard.
Diversification Opportunities for Cellectis and Spineguard
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cellectis and Spineguard is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cellectis and Spineguard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spineguard and Cellectis 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 Cellectis are associated (or correlated) with Spineguard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spineguard has no effect on the direction of Cellectis i.e., Cellectis and Spineguard go up and down completely randomly.
Pair Corralation between Cellectis and Spineguard
Assuming the 90 days trading horizon Cellectis is expected to under-perform the Spineguard. But the stock apears to be less risky and, when comparing its historical volatility, Cellectis is 4.32 times less risky than Spineguard. The stock trades about -0.04 of its potential returns per unit of risk. The Spineguard is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Spineguard on September 2, 2024 and sell it today you would earn a total of 13.00 from holding Spineguard or generate 108.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellectis vs. Spineguard
Performance |
| Timeline |
| Cellectis |
| Spineguard |
Cellectis and Spineguard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellectis and Spineguard
The main advantage of trading using opposite Cellectis and Spineguard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellectis position performs unexpectedly, Spineguard 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 Spineguard will offset losses from the drop in Spineguard's long position.The idea behind Cellectis and Spineguard 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.| Spineguard vs. Biophytis SA | Spineguard vs. Spineway | Spineguard vs. Novacyt | Spineguard vs. Quantum Genomics SA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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