Correlation Between NYSE Composite and Celularity
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Celularity 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 NYSE Composite and Celularity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Celularity, you can compare the effects of market volatilities on NYSE Composite and Celularity 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 NYSE Composite with a short position of Celularity. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Celularity.
Diversification Opportunities for NYSE Composite and Celularity
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and Celularity is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Celularity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celularity and NYSE Composite 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 NYSE Composite are associated (or correlated) with Celularity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celularity has no effect on the direction of NYSE Composite i.e., NYSE Composite and Celularity go up and down completely randomly.
Pair Corralation between NYSE Composite and Celularity
Assuming the 90 days trading horizon NYSE Composite is expected to generate 46.66 times less return on investment than Celularity. But when comparing it to its historical volatility, NYSE Composite is 40.05 times less risky than Celularity. It trades about 0.14 of its potential returns per unit of risk. Celularity is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1.01 in Celularity on August 29, 2024 and sell it today you would earn a total of 0.56 from holding Celularity or generate 55.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.74% |
| Values | Daily Returns |
NYSE Composite vs. Celularity
Performance |
| Timeline |
NYSE Composite and Celularity Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Celularity
Pair trading matchups for Celularity
Pair Trading with NYSE Composite and Celularity
The main advantage of trading using opposite NYSE Composite and Celularity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Celularity 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 Celularity will offset losses from the drop in Celularity's long position.| NYSE Composite vs. Sphere Entertainment Co | NYSE Composite vs. Weibo Corp | NYSE Composite vs. BCE Inc | NYSE Composite vs. Pinterest |
| Celularity vs. Bright Minds Biosciences | Celularity vs. HP Inc | Celularity vs. Intel | Celularity vs. Chevron Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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