Correlation Between Molecular Templates and Cellectis
Can any of the company-specific risk be diversified away by investing in both Molecular Templates 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 Molecular Templates and Cellectis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molecular Templates and Cellectis SA, you can compare the effects of market volatilities on Molecular Templates 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 Molecular Templates with a short position of Cellectis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molecular Templates and Cellectis.
Diversification Opportunities for Molecular Templates and Cellectis
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Molecular and Cellectis is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Molecular Templates and Cellectis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellectis SA and Molecular Templates 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 Molecular Templates 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 Molecular Templates i.e., Molecular Templates and Cellectis go up and down completely randomly.
Pair Corralation between Molecular Templates and Cellectis
Given the investment horizon of 90 days Molecular Templates is expected to under-perform the Cellectis. In addition to that, Molecular Templates is 4.95 times more volatile than Cellectis SA. It trades about -0.01 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 |
Molecular Templates vs. Cellectis SA
Performance |
| Timeline |
| Molecular Templates |
| Cellectis SA |
Molecular Templates and Cellectis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molecular Templates and Cellectis
The main advantage of trading using opposite Molecular Templates and Cellectis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molecular Templates 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.| Molecular Templates vs. Eliem Therapeutics | Molecular Templates vs. HCW Biologics | Molecular Templates vs. Scpharmaceuticals | Molecular Templates 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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