Correlation Between Estrella Immunopharma and Celldex Therapeutics
Can any of the company-specific risk be diversified away by investing in both Estrella Immunopharma and Celldex Therapeutics 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 Estrella Immunopharma and Celldex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Estrella Immunopharma and Celldex Therapeutics, you can compare the effects of market volatilities on Estrella Immunopharma and Celldex Therapeutics 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 Estrella Immunopharma with a short position of Celldex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estrella Immunopharma and Celldex Therapeutics.
Diversification Opportunities for Estrella Immunopharma and Celldex Therapeutics
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Estrella and Celldex is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Estrella Immunopharma and Celldex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celldex Therapeutics and Estrella Immunopharma 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 Estrella Immunopharma are associated (or correlated) with Celldex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celldex Therapeutics has no effect on the direction of Estrella Immunopharma i.e., Estrella Immunopharma and Celldex Therapeutics go up and down completely randomly.
Pair Corralation between Estrella Immunopharma and Celldex Therapeutics
Assuming the 90 days horizon Estrella Immunopharma is expected to generate 7.47 times more return on investment than Celldex Therapeutics. However, Estrella Immunopharma is 7.47 times more volatile than Celldex Therapeutics. It trades about 0.23 of its potential returns per unit of risk. Celldex Therapeutics is currently generating about -0.16 per unit of risk. If you would invest 7.62 in Estrella Immunopharma on November 27, 2024 and sell it today you would earn a total of 3.38 from holding Estrella Immunopharma or generate 44.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 65.0% |
| Values | Daily Returns |
Estrella Immunopharma vs. Celldex Therapeutics
Performance |
| Timeline |
| Estrella Immunopharma |
| Celldex Therapeutics |
Estrella Immunopharma and Celldex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estrella Immunopharma and Celldex Therapeutics
The main advantage of trading using opposite Estrella Immunopharma and Celldex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estrella Immunopharma position performs unexpectedly, Celldex Therapeutics 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 Celldex Therapeutics will offset losses from the drop in Celldex Therapeutics' long position.| Estrella Immunopharma vs. Sunlands Technology Group | Estrella Immunopharma vs. CVR Energy | Estrella Immunopharma vs. MOGU Inc | Estrella Immunopharma vs. Best Buy Co |
| Celldex Therapeutics vs. Ideaya Biosciences | Celldex Therapeutics vs. AnaptysBio | Celldex Therapeutics vs. MeiraGTx Holdings PLC | Celldex Therapeutics vs. Keros Therapeutics |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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