Correlation Between Century Therapeutics and Cellectis
Can any of the company-specific risk be diversified away by investing in both Century Therapeutics and Cellectis 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 Century Therapeutics and Cellectis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Century Therapeutics and Cellectis SA, you can compare the effects of market volatilities on Century Therapeutics and Cellectis 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 Century Therapeutics with a short position of Cellectis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Therapeutics and Cellectis.
Diversification Opportunities for Century Therapeutics and Cellectis
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Century and Cellectis is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Century Therapeutics and Cellectis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellectis SA and Century Therapeutics 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 Century Therapeutics are associated (or correlated) with Cellectis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellectis SA has no effect on the direction of Century Therapeutics i.e., Century Therapeutics and Cellectis go up and down completely randomly.
Pair Corralation between Century Therapeutics and Cellectis
Given the investment horizon of 90 days Century Therapeutics is expected to under-perform the Cellectis. In addition to that, Century Therapeutics is 1.62 times more volatile than Cellectis SA. It trades about -0.08 of its total potential returns per unit of risk. Cellectis SA is currently generating about -0.03 per unit of volatility. If you would invest 258.00 in Cellectis SA on August 27, 2024 and sell it today you would lose (71.00) from holding Cellectis SA or give up 27.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Century Therapeutics vs. Cellectis SA
Performance |
| Timeline |
| Century Therapeutics |
| Cellectis SA |
Century Therapeutics and Cellectis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Century Therapeutics and Cellectis
The main advantage of trading using opposite Century Therapeutics and Cellectis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Century Therapeutics position performs unexpectedly, Cellectis 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 Cellectis will offset losses from the drop in Cellectis' long position.| Century Therapeutics vs. Eliem Therapeutics | Century Therapeutics vs. HCW Biologics | Century Therapeutics vs. Scpharmaceuticals | Century Therapeutics vs. Milestone Pharmaceuticals |
| Cellectis vs. Eliem Therapeutics | Cellectis vs. HCW Biologics | Cellectis vs. Scpharmaceuticals | Cellectis vs. Milestone Pharmaceuticals |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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