Correlation Between Cellectis and Biomerieux
Can any of the company-specific risk be diversified away by investing in both Cellectis and Biomerieux 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 Biomerieux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellectis and Biomerieux SA, you can compare the effects of market volatilities on Cellectis and Biomerieux 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 Biomerieux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellectis and Biomerieux.
Diversification Opportunities for Cellectis and Biomerieux
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cellectis and Biomerieux is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cellectis and Biomerieux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biomerieux 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 Biomerieux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biomerieux SA has no effect on the direction of Cellectis i.e., Cellectis and Biomerieux go up and down completely randomly.
Pair Corralation between Cellectis and Biomerieux
Assuming the 90 days trading horizon Cellectis is expected to generate 6.67 times more return on investment than Biomerieux. However, Cellectis is 6.67 times more volatile than Biomerieux SA. It trades about 0.02 of its potential returns per unit of risk. Biomerieux SA is currently generating about 0.01 per unit of risk. If you would invest 217.00 in Cellectis on August 26, 2024 and sell it today you would lose (44.00) from holding Cellectis or give up 20.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellectis vs. Biomerieux SA
Performance |
| Timeline |
| Cellectis |
| Biomerieux SA |
Cellectis and Biomerieux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellectis and Biomerieux
The main advantage of trading using opposite Cellectis and Biomerieux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellectis position performs unexpectedly, Biomerieux 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 Biomerieux will offset losses from the drop in Biomerieux's long position.| Cellectis vs. Biomerieux SA | Cellectis vs. Eurofins Scientific SE | Cellectis vs. Sartorius Stedim Biotech | Cellectis vs. SEB SA |
| Biomerieux vs. Sartorius Stedim Biotech | Biomerieux vs. Eurofins Scientific SE | Biomerieux vs. Ipsen SA | Biomerieux vs. Edenred 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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