Correlation Between CEL SCI and Northwest Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both CEL SCI and Northwest Biotherapeutics 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 Northwest Biotherapeutics 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 Northwest Biotherapeutics, you can compare the effects of market volatilities on CEL SCI and Northwest Biotherapeutics 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 Northwest Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEL SCI and Northwest Biotherapeutics.
Diversification Opportunities for CEL SCI and Northwest Biotherapeutics
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CEL and Northwest is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding CEL SCI Corp and Northwest Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northwest Biotherapeutics 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 Northwest Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northwest Biotherapeutics has no effect on the direction of CEL SCI i.e., CEL SCI and Northwest Biotherapeutics go up and down completely randomly.
Pair Corralation between CEL SCI and Northwest Biotherapeutics
Considering the 90-day investment horizon CEL SCI Corp is expected to under-perform the Northwest Biotherapeutics. In addition to that, CEL SCI is 2.06 times more volatile than Northwest Biotherapeutics. It trades about -0.11 of its total potential returns per unit of risk. Northwest Biotherapeutics is currently generating about -0.04 per unit of volatility. If you would invest 34.00 in Northwest Biotherapeutics on October 24, 2024 and sell it today you would lose (6.00) from holding Northwest Biotherapeutics or give up 17.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEL SCI Corp vs. Northwest Biotherapeutics
Performance |
| Timeline |
| CEL SCI Corp |
| Northwest Biotherapeutics |
CEL SCI and Northwest Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEL SCI and Northwest Biotherapeutics
The main advantage of trading using opposite CEL SCI and Northwest Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEL SCI position performs unexpectedly, Northwest Biotherapeutics 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 Northwest Biotherapeutics will offset losses from the drop in Northwest Biotherapeutics' long position.The idea behind CEL SCI Corp and Northwest Biotherapeutics 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.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| 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 |