Correlation Between Aerovate Therapeutics and Celldex Therapeutics
Can any of the company-specific risk be diversified away by investing in both Aerovate Therapeutics and Celldex 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 Aerovate Therapeutics and Celldex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerovate Therapeutics and Celldex Therapeutics, you can compare the effects of market volatilities on Aerovate Therapeutics and Celldex 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 Aerovate Therapeutics with a short position of Celldex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerovate Therapeutics and Celldex Therapeutics.
Diversification Opportunities for Aerovate Therapeutics and Celldex Therapeutics
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aerovate and Celldex is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aerovate Therapeutics and Celldex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celldex Therapeutics and Aerovate Therapeutics 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 Aerovate Therapeutics are associated (or correlated) with Celldex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celldex Therapeutics has no effect on the direction of Aerovate Therapeutics i.e., Aerovate Therapeutics and Celldex Therapeutics go up and down completely randomly.
Pair Corralation between Aerovate Therapeutics and Celldex Therapeutics
Given the investment horizon of 90 days Aerovate Therapeutics is expected to generate 0.87 times more return on investment than Celldex Therapeutics. However, Aerovate Therapeutics is 1.15 times less risky than Celldex Therapeutics. It trades about -0.12 of its potential returns per unit of risk. Celldex Therapeutics is currently generating about -0.16 per unit of risk. If you would invest 257.00 in Aerovate Therapeutics on November 27, 2024 and sell it today you would lose (14.00) from holding Aerovate Therapeutics or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aerovate Therapeutics vs. Celldex Therapeutics
Performance |
| Timeline |
| Aerovate Therapeutics |
| Celldex Therapeutics |
Aerovate Therapeutics and Celldex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerovate Therapeutics and Celldex Therapeutics
The main advantage of trading using opposite Aerovate Therapeutics and Celldex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerovate Therapeutics position performs unexpectedly, Celldex 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 Celldex Therapeutics will offset losses from the drop in Celldex Therapeutics' long position.| Aerovate Therapeutics vs. Adagene | Aerovate Therapeutics vs. Acrivon Therapeutics, Common | Aerovate Therapeutics vs. Rezolute | Aerovate Therapeutics vs. AN2 Therapeutics |
| Celldex Therapeutics vs. Ideaya Biosciences | Celldex Therapeutics vs. AnaptysBio | Celldex Therapeutics vs. MeiraGTx Holdings PLC | Celldex Therapeutics vs. Keros Therapeutics |
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 Stocks Directory module to find actively traded stocks across global markets.
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