Correlation Between Cellectis and Covalon Technologies
Can any of the company-specific risk be diversified away by investing in both Cellectis and Covalon Technologies 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 Covalon Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellectis SA and Covalon Technologies, you can compare the effects of market volatilities on Cellectis and Covalon Technologies 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 Covalon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellectis and Covalon Technologies.
Diversification Opportunities for Cellectis and Covalon Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cellectis and Covalon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cellectis SA and Covalon Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Covalon Technologies 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 Covalon Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Covalon Technologies has no effect on the direction of Cellectis i.e., Cellectis and Covalon Technologies go up and down completely randomly.
Pair Corralation between Cellectis and Covalon Technologies
Assuming the 90 days horizon Cellectis SA is expected to generate 2.35 times more return on investment than Covalon Technologies. However, Cellectis is 2.35 times more volatile than Covalon Technologies. It trades about 0.06 of its potential returns per unit of risk. Covalon Technologies is currently generating about 0.11 per unit of risk. If you would invest 95.00 in Cellectis SA on August 25, 2024 and sell it today you would earn a total of 159.00 from holding Cellectis SA or generate 167.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellectis SA vs. Covalon Technologies
Performance |
| Timeline |
| Cellectis SA |
| Covalon Technologies |
Cellectis and Covalon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellectis and Covalon Technologies
The main advantage of trading using opposite Cellectis and Covalon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellectis position performs unexpectedly, Covalon Technologies 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 Covalon Technologies will offset losses from the drop in Covalon Technologies' long position.| Cellectis vs. Covalon Technologies | Cellectis vs. biOasis Technologies | Cellectis vs. Mosaic Immunoengineering | Cellectis vs. Biotron Limited |
| Covalon Technologies vs. Biotron Limited | Covalon Technologies vs. biOasis Technologies | Covalon Technologies vs. Mosaic Immunoengineering | Covalon Technologies vs. Cellectis SA |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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