Correlation Between Celularity and Jasper Therapeutics
Can any of the company-specific risk be diversified away by investing in both Celularity and Jasper 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 Celularity and Jasper Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celularity and Jasper Therapeutics, you can compare the effects of market volatilities on Celularity and Jasper 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 Celularity with a short position of Jasper Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celularity and Jasper Therapeutics.
Diversification Opportunities for Celularity and Jasper Therapeutics
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Celularity and Jasper is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Celularity and Jasper Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasper Therapeutics and Celularity 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 Celularity are associated (or correlated) with Jasper Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasper Therapeutics has no effect on the direction of Celularity i.e., Celularity and Jasper Therapeutics go up and down completely randomly.
Pair Corralation between Celularity and Jasper Therapeutics
Assuming the 90 days horizon Celularity is expected to generate 1.88 times more return on investment than Jasper Therapeutics. However, Celularity is 1.88 times more volatile than Jasper Therapeutics. It trades about 0.11 of its potential returns per unit of risk. Jasper Therapeutics is currently generating about 0.08 per unit of risk. If you would invest 17.00 in Celularity on September 3, 2024 and sell it today you would lose (15.00) from holding Celularity or give up 88.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.79% |
| Values | Daily Returns |
Celularity vs. Jasper Therapeutics
Performance |
| Timeline |
| Celularity |
| Jasper Therapeutics |
Celularity and Jasper Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celularity and Jasper Therapeutics
The main advantage of trading using opposite Celularity and Jasper Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celularity position performs unexpectedly, Jasper 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 Jasper Therapeutics will offset losses from the drop in Jasper Therapeutics' long position.| Celularity vs. Celularity | Celularity vs. Quantum Si incorporated | Celularity vs. Humacyte | Celularity vs. Surrozen Warrant |
| Jasper Therapeutics vs. SAB Biotherapeutics | Jasper Therapeutics vs. NRx Pharmaceuticals | Jasper Therapeutics vs. Celularity |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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