Correlation Between Cingulate and Celularity
Can any of the company-specific risk be diversified away by investing in both Cingulate and Celularity 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 Cingulate and Celularity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cingulate and Celularity, you can compare the effects of market volatilities on Cingulate and Celularity 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 Cingulate with a short position of Celularity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cingulate and Celularity.
Diversification Opportunities for Cingulate and Celularity
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cingulate and Celularity is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate and Celularity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celularity and Cingulate 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 Cingulate are associated (or correlated) with Celularity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celularity has no effect on the direction of Cingulate i.e., Cingulate and Celularity go up and down completely randomly.
Pair Corralation between Cingulate and Celularity
Given the investment horizon of 90 days Cingulate is expected to generate 77.15 times less return on investment than Celularity. But when comparing it to its historical volatility, Cingulate is 5.6 times less risky than Celularity. It trades about 0.01 of its potential returns per unit of risk. Celularity is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 7.28 in Celularity on November 2, 2024 and sell it today you would lose (0.68) from holding Celularity or give up 9.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 81.98% |
| Values | Daily Returns |
Cingulate vs. Celularity
Performance |
| Timeline |
| Cingulate |
| Celularity |
Cingulate and Celularity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cingulate and Celularity
The main advantage of trading using opposite Cingulate and Celularity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate position performs unexpectedly, Celularity 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 Celularity will offset losses from the drop in Celularity's long position.| Cingulate vs. SAB Biotherapeutics | Cingulate vs. Senti Biosciences | Cingulate vs. Aerovate Therapeutics | Cingulate vs. Adagene |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| 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 | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |