Correlation Between Celcuity LLC and GRI Bio
Can any of the company-specific risk be diversified away by investing in both Celcuity LLC and GRI Bio 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 GRI Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celcuity LLC and GRI Bio, you can compare the effects of market volatilities on Celcuity LLC and GRI Bio 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 GRI Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celcuity LLC and GRI Bio.
Diversification Opportunities for Celcuity LLC and GRI Bio
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Celcuity and GRI is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Celcuity LLC and GRI Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRI Bio 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 GRI Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRI Bio has no effect on the direction of Celcuity LLC i.e., Celcuity LLC and GRI Bio go up and down completely randomly.
Pair Corralation between Celcuity LLC and GRI Bio
Given the investment horizon of 90 days Celcuity LLC is expected to generate 0.43 times more return on investment than GRI Bio. However, Celcuity LLC is 2.34 times less risky than GRI Bio. It trades about -0.21 of its potential returns per unit of risk. GRI Bio is currently generating about -0.09 per unit of risk. If you would invest 1,550 in Celcuity LLC on September 1, 2024 and sell it today you would lose (270.00) from holding Celcuity LLC or give up 17.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celcuity LLC vs. GRI Bio
Performance |
| Timeline |
| Celcuity LLC |
| GRI Bio |
Celcuity LLC and GRI Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celcuity LLC and GRI Bio
The main advantage of trading using opposite Celcuity LLC and GRI Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celcuity LLC position performs unexpectedly, GRI Bio 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 GRI Bio will offset losses from the drop in GRI Bio's long position.| Celcuity LLC vs. Werewolf Therapeutics | Celcuity LLC vs. Edgewise Therapeutics | Celcuity LLC vs. C4 Therapeutics | Celcuity LLC vs. Anebulo Pharmaceuticals |
| GRI Bio vs. Werewolf Therapeutics | GRI Bio vs. Edgewise Therapeutics | GRI Bio vs. Celcuity LLC | GRI Bio vs. C4 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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