Correlation Between Celcuity LLC and Passage Bio
Can any of the company-specific risk be diversified away by investing in both Celcuity LLC and Passage 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 Passage 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 Passage Bio, you can compare the effects of market volatilities on Celcuity LLC and Passage 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 Passage Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celcuity LLC and Passage Bio.
Diversification Opportunities for Celcuity LLC and Passage Bio
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Celcuity and Passage is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Celcuity LLC and Passage Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Passage 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 Passage Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Passage Bio has no effect on the direction of Celcuity LLC i.e., Celcuity LLC and Passage Bio go up and down completely randomly.
Pair Corralation between Celcuity LLC and Passage Bio
Given the investment horizon of 90 days Celcuity LLC is expected to under-perform the Passage Bio. But the stock apears to be less risky and, when comparing its historical volatility, Celcuity LLC is 2.78 times less risky than Passage Bio. The stock trades about -0.02 of its potential returns per unit of risk. The Passage Bio is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 124.00 in Passage Bio on September 1, 2024 and sell it today you would lose (11.00) from holding Passage Bio or give up 8.87% 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. Passage Bio
Performance |
| Timeline |
| Celcuity LLC |
| Passage Bio |
Celcuity LLC and Passage Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celcuity LLC and Passage Bio
The main advantage of trading using opposite Celcuity LLC and Passage Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celcuity LLC position performs unexpectedly, Passage 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 Passage Bio will offset losses from the drop in Passage Bio's long position.| Celcuity LLC vs. Werewolf Therapeutics | Celcuity LLC vs. Edgewise Therapeutics | Celcuity LLC vs. C4 Therapeutics | Celcuity LLC vs. Anebulo Pharmaceuticals |
| Passage Bio vs. Tff Pharmaceuticals | Passage Bio vs. Eliem Therapeutics | Passage Bio vs. Inhibrx | Passage Bio vs. Enliven 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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