Correlation Between Celcuity LLC and Aldeyra
Can any of the company-specific risk be diversified away by investing in both Celcuity LLC and Aldeyra 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 Celcuity LLC and Aldeyra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celcuity LLC and Aldeyra, you can compare the effects of market volatilities on Celcuity LLC and Aldeyra 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 Celcuity LLC with a short position of Aldeyra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celcuity LLC and Aldeyra.
Diversification Opportunities for Celcuity LLC and Aldeyra
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Celcuity and Aldeyra is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Celcuity LLC and Aldeyra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aldeyra and Celcuity LLC 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 Celcuity LLC are associated (or correlated) with Aldeyra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aldeyra has no effect on the direction of Celcuity LLC i.e., Celcuity LLC and Aldeyra go up and down completely randomly.
Pair Corralation between Celcuity LLC and Aldeyra
Given the investment horizon of 90 days Celcuity LLC is expected to generate 3.15 times less return on investment than Aldeyra. But when comparing it to its historical volatility, Celcuity LLC is 1.55 times less risky than Aldeyra. It trades about 0.04 of its potential returns per unit of risk. Aldeyra is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 236.00 in Aldeyra on September 4, 2024 and sell it today you would earn a total of 246.00 from holding Aldeyra or generate 104.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celcuity LLC vs. Aldeyra
Performance |
| Timeline |
| Celcuity LLC |
| Aldeyra |
Celcuity LLC and Aldeyra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celcuity LLC and Aldeyra
The main advantage of trading using opposite Celcuity LLC and Aldeyra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celcuity LLC position performs unexpectedly, Aldeyra 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 Aldeyra will offset losses from the drop in Aldeyra's long position.| Celcuity LLC vs. Werewolf Therapeutics | Celcuity LLC vs. Edgewise Therapeutics | Celcuity LLC vs. C4 Therapeutics | Celcuity LLC vs. Anebulo Pharmaceuticals |
| Aldeyra vs. Tarsus Pharmaceuticals | Aldeyra vs. Travere Therapeutics | Aldeyra vs. Eton Pharmaceuticals | Aldeyra vs. Viridian 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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