Correlation Between CEL SCI and Equillium
Can any of the company-specific risk be diversified away by investing in both CEL SCI and Equillium 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 CEL SCI and Equillium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEL SCI Corp and Equillium, you can compare the effects of market volatilities on CEL SCI and Equillium 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 CEL SCI with a short position of Equillium. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEL SCI and Equillium.
Diversification Opportunities for CEL SCI and Equillium
Very weak diversification
The 3 months correlation between CEL and Equillium is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding CEL SCI Corp and Equillium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equillium and CEL SCI 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 CEL SCI Corp are associated (or correlated) with Equillium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equillium has no effect on the direction of CEL SCI i.e., CEL SCI and Equillium go up and down completely randomly.
Pair Corralation between CEL SCI and Equillium
Considering the 90-day investment horizon CEL SCI Corp is expected to generate 1.97 times more return on investment than Equillium. However, CEL SCI is 1.97 times more volatile than Equillium. It trades about 0.08 of its potential returns per unit of risk. Equillium is currently generating about -0.16 per unit of risk. If you would invest 70.00 in CEL SCI Corp on September 13, 2024 and sell it today you would earn a total of 5.98 from holding CEL SCI Corp or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEL SCI Corp vs. Equillium
Performance |
| Timeline |
| CEL SCI Corp |
| Equillium |
CEL SCI and Equillium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEL SCI and Equillium
The main advantage of trading using opposite CEL SCI and Equillium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEL SCI position performs unexpectedly, Equillium 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 Equillium will offset losses from the drop in Equillium's long position.The idea behind CEL SCI Corp and Equillium pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Equillium vs. Lyra Therapeutics | Equillium vs. Hookipa Pharma | Equillium vs. Jasper Therapeutics | Equillium vs. Cingulate Warrants |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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