Correlation Between Celcuity LLC and Lyell Immunopharma
Can any of the company-specific risk be diversified away by investing in both Celcuity LLC and Lyell Immunopharma 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 Lyell Immunopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celcuity LLC and Lyell Immunopharma, you can compare the effects of market volatilities on Celcuity LLC and Lyell Immunopharma 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 Lyell Immunopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celcuity LLC and Lyell Immunopharma.
Diversification Opportunities for Celcuity LLC and Lyell Immunopharma
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Celcuity and Lyell is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Celcuity LLC and Lyell Immunopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyell Immunopharma 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 Lyell Immunopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyell Immunopharma has no effect on the direction of Celcuity LLC i.e., Celcuity LLC and Lyell Immunopharma go up and down completely randomly.
Pair Corralation between Celcuity LLC and Lyell Immunopharma
Given the investment horizon of 90 days Celcuity LLC is expected to under-perform the Lyell Immunopharma. But the stock apears to be less risky and, when comparing its historical volatility, Celcuity LLC is 2.41 times less risky than Lyell Immunopharma. The stock trades about -0.14 of its potential returns per unit of risk. The Lyell Immunopharma is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 94.00 in Lyell Immunopharma on August 28, 2024 and sell it today you would lose (3.00) from holding Lyell Immunopharma or give up 3.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celcuity LLC vs. Lyell Immunopharma
Performance |
| Timeline |
| Celcuity LLC |
| Lyell Immunopharma |
Celcuity LLC and Lyell Immunopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celcuity LLC and Lyell Immunopharma
The main advantage of trading using opposite Celcuity LLC and Lyell Immunopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celcuity LLC position performs unexpectedly, Lyell Immunopharma 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 Lyell Immunopharma will offset losses from the drop in Lyell Immunopharma's long position.| Celcuity LLC vs. Werewolf Therapeutics | Celcuity LLC vs. Edgewise Therapeutics | Celcuity LLC vs. C4 Therapeutics | Celcuity LLC vs. Anebulo Pharmaceuticals |
| Lyell Immunopharma vs. Cullinan Oncology LLC | Lyell Immunopharma vs. Monte Rosa Therapeutics | Lyell Immunopharma vs. Revolution Medicines | Lyell Immunopharma vs. Nkarta Inc |
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.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |