Correlation Between Lyell Immunopharma and Celcuity LLC
Can any of the company-specific risk be diversified away by investing in both Lyell Immunopharma and Celcuity LLC 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 Lyell Immunopharma and Celcuity LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyell Immunopharma and Celcuity LLC, you can compare the effects of market volatilities on Lyell Immunopharma and Celcuity LLC 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 Lyell Immunopharma with a short position of Celcuity LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyell Immunopharma and Celcuity LLC.
Diversification Opportunities for Lyell Immunopharma and Celcuity LLC
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lyell and Celcuity is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Lyell Immunopharma and Celcuity LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celcuity LLC and Lyell 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 Lyell Immunopharma are associated (or correlated) with Celcuity LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celcuity LLC has no effect on the direction of Lyell Immunopharma i.e., Lyell Immunopharma and Celcuity LLC go up and down completely randomly.
Pair Corralation between Lyell Immunopharma and Celcuity LLC
Given the investment horizon of 90 days Lyell Immunopharma is expected to generate 2.41 times more return on investment than Celcuity LLC. However, Lyell Immunopharma is 2.41 times more volatile than Celcuity LLC. It trades about 0.02 of its potential returns per unit of risk. Celcuity LLC is currently generating about -0.14 per unit of risk. If you would invest 94.00 in Lyell Immunopharma on August 28, 2024 and sell it today you would lose (3.00) from holding Lyell Immunopharma or give up 3.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyell Immunopharma vs. Celcuity LLC
Performance |
| Timeline |
| Lyell Immunopharma |
| Celcuity LLC |
Lyell Immunopharma and Celcuity LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyell Immunopharma and Celcuity LLC
The main advantage of trading using opposite Lyell Immunopharma and Celcuity LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyell Immunopharma position performs unexpectedly, Celcuity LLC 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 Celcuity LLC will offset losses from the drop in Celcuity LLC's long position.| Lyell Immunopharma vs. Cullinan Oncology LLC | Lyell Immunopharma vs. Monte Rosa Therapeutics | Lyell Immunopharma vs. Revolution Medicines | Lyell Immunopharma vs. Nkarta Inc |
| Celcuity LLC vs. Werewolf Therapeutics | Celcuity LLC vs. Edgewise Therapeutics | Celcuity LLC vs. C4 Therapeutics | Celcuity LLC vs. Anebulo 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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