Correlation Between Argen X and Celyad SA
Can any of the company-specific risk be diversified away by investing in both Argen X and Celyad SA 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 Argen X and Celyad SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argen X and Celyad SA, you can compare the effects of market volatilities on Argen X and Celyad SA 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 Argen X with a short position of Celyad SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argen X and Celyad SA.
Diversification Opportunities for Argen X and Celyad SA
Poor diversification
The 3 months correlation between Argen and Celyad is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Argen X and Celyad SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celyad SA and Argen X 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 Argen X are associated (or correlated) with Celyad SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celyad SA has no effect on the direction of Argen X i.e., Argen X and Celyad SA go up and down completely randomly.
Pair Corralation between Argen X and Celyad SA
Assuming the 90 days trading horizon Argen X is expected to generate 10.99 times less return on investment than Celyad SA. But when comparing it to its historical volatility, Argen X is 11.4 times less risky than Celyad SA. It trades about 0.28 of its potential returns per unit of risk. Celyad SA is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Celyad SA on August 30, 2024 and sell it today you would earn a total of 41.00 from holding Celyad SA or generate 157.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argen X vs. Celyad SA
Performance |
| Timeline |
| Argen X |
| Celyad SA |
Argen X and Celyad SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argen X and Celyad SA
The main advantage of trading using opposite Argen X and Celyad SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argen X position performs unexpectedly, Celyad SA 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 Celyad SA will offset losses from the drop in Celyad SA's long position.The idea behind Argen X and Celyad 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.| Celyad SA vs. Onward Medical NV | Celyad SA vs. Ion Beam Applications | Celyad SA vs. Keyware Technologies NV |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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