Correlation Between Gamida Cell and ChitogenX
Can any of the company-specific risk be diversified away by investing in both Gamida Cell and ChitogenX 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 ChitogenX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamida Cell and ChitogenX, you can compare the effects of market volatilities on Gamida Cell and ChitogenX 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 ChitogenX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamida Cell and ChitogenX.
Diversification Opportunities for Gamida Cell and ChitogenX
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gamida and ChitogenX is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Gamida Cell and ChitogenX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChitogenX 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 ChitogenX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChitogenX has no effect on the direction of Gamida Cell i.e., Gamida Cell and ChitogenX go up and down completely randomly.
Pair Corralation between Gamida Cell and ChitogenX
If you would invest 140.00 in Gamida Cell on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Gamida Cell or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Gamida Cell vs. ChitogenX
Performance |
| Timeline |
| Gamida Cell |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ChitogenX |
Gamida Cell and ChitogenX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamida Cell and ChitogenX
The main advantage of trading using opposite Gamida Cell and ChitogenX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamida Cell position performs unexpectedly, ChitogenX 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 ChitogenX will offset losses from the drop in ChitogenX's long position.| Gamida Cell vs. BioLineRx | Gamida Cell vs. Ardelyx | Gamida Cell vs. Lexicon Pharmaceuticals | Gamida Cell vs. Seres Therapeutics |
| ChitogenX vs. Sino Biopharmaceutical Ltd | ChitogenX vs. Defence Therapeutics | ChitogenX vs. Aileron Therapeutics | ChitogenX vs. Enlivex 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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