Correlation Between Cellectis and Theradiag
Can any of the company-specific risk be diversified away by investing in both Cellectis and Theradiag 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 Theradiag into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellectis and Theradiag SA, you can compare the effects of market volatilities on Cellectis and Theradiag 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 Theradiag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellectis and Theradiag.
Diversification Opportunities for Cellectis and Theradiag
Very good diversification
The 3 months correlation between Cellectis and Theradiag is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cellectis and Theradiag SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Theradiag SA 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 Theradiag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Theradiag SA has no effect on the direction of Cellectis i.e., Cellectis and Theradiag go up and down completely randomly.
Pair Corralation between Cellectis and Theradiag
Assuming the 90 days trading horizon Cellectis is expected to generate 0.55 times more return on investment than Theradiag. However, Cellectis is 1.8 times less risky than Theradiag. It trades about 0.22 of its potential returns per unit of risk. Theradiag SA is currently generating about -0.03 per unit of risk. If you would invest 171.00 in Cellectis on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Cellectis or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cellectis vs. Theradiag SA
Performance |
| Timeline |
| Cellectis |
| Theradiag SA |
Cellectis and Theradiag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellectis and Theradiag
The main advantage of trading using opposite Cellectis and Theradiag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellectis position performs unexpectedly, Theradiag 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 Theradiag will offset losses from the drop in Theradiag's long position.The idea behind Cellectis and Theradiag SA 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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