Correlation Between Gamida Cell and C4 Therapeutics
Can any of the company-specific risk be diversified away by investing in both Gamida Cell and C4 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 Gamida Cell and C4 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamida Cell and C4 Therapeutics, you can compare the effects of market volatilities on Gamida Cell and C4 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 Gamida Cell with a short position of C4 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamida Cell and C4 Therapeutics.
Diversification Opportunities for Gamida Cell and C4 Therapeutics
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gamida and CCCC is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Gamida Cell and C4 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C4 Therapeutics and Gamida Cell 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 Gamida Cell are associated (or correlated) with C4 Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C4 Therapeutics has no effect on the direction of Gamida Cell i.e., Gamida Cell and C4 Therapeutics go up and down completely randomly.
Pair Corralation between Gamida Cell and C4 Therapeutics
If you would invest 176.00 in C4 Therapeutics on September 4, 2024 and sell it today you would earn a total of 254.00 from holding C4 Therapeutics or generate 144.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Gamida Cell vs. C4 Therapeutics
Performance |
| Timeline |
| Gamida Cell |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| C4 Therapeutics |
Gamida Cell and C4 Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamida Cell and C4 Therapeutics
The main advantage of trading using opposite Gamida Cell and C4 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamida Cell position performs unexpectedly, C4 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 C4 Therapeutics will offset losses from the drop in C4 Therapeutics' long position.| Gamida Cell vs. BioLineRx | Gamida Cell vs. Ardelyx | Gamida Cell vs. Lexicon Pharmaceuticals | Gamida Cell vs. Seres Therapeutics |
| C4 Therapeutics vs. Shattuck Labs | C4 Therapeutics vs. Eliem Therapeutics | C4 Therapeutics vs. Prelude Therapeutics | C4 Therapeutics vs. Monte Rosa 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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