Correlation Between Cellectis and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Cellectis and Dow Jones 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 Cellectis and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellectis SA and Dow Jones Industrial, you can compare the effects of market volatilities on Cellectis and Dow Jones 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 Cellectis with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellectis and Dow Jones.
Diversification Opportunities for Cellectis and Dow Jones
Excellent diversification
The 3 months correlation between Cellectis and Dow is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cellectis SA and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Cellectis 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 Cellectis SA are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Cellectis i.e., Cellectis and Dow Jones go up and down completely randomly.
Pair Corralation between Cellectis and Dow Jones
Given the investment horizon of 90 days Cellectis SA is expected to under-perform the Dow Jones. In addition to that, Cellectis is 2.92 times more volatile than Dow Jones Industrial. It trades about -0.04 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.22 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 27, 2024 and sell it today you would earn a total of 190,894 from holding Dow Jones Industrial or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellectis SA vs. Dow Jones Industrial
Performance |
| Timeline |
Cellectis and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Cellectis SA
Pair trading matchups for Cellectis
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Cellectis and Dow Jones
The main advantage of trading using opposite Cellectis and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellectis position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Cellectis vs. DiaMedica Therapeutics | Cellectis vs. Soleno Therapeutics | Cellectis vs. Genfit | Cellectis vs. Eliem Therapeutics |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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.
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