Correlation Between NYSE Composite and Celldex Therapeutics
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Celldex Therapeutics 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 Celldex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Celldex Therapeutics, you can compare the effects of market volatilities on NYSE Composite and Celldex Therapeutics 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 Celldex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Celldex Therapeutics.
Diversification Opportunities for NYSE Composite and Celldex Therapeutics
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Celldex is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Celldex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celldex Therapeutics 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 Celldex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celldex Therapeutics has no effect on the direction of NYSE Composite i.e., NYSE Composite and Celldex Therapeutics go up and down completely randomly.
Pair Corralation between NYSE Composite and Celldex Therapeutics
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.18 times more return on investment than Celldex Therapeutics. However, NYSE Composite is 5.7 times less risky than Celldex Therapeutics. It trades about 0.12 of its potential returns per unit of risk. Celldex Therapeutics is currently generating about -0.03 per unit of risk. If you would invest 1,685,289 in NYSE Composite on August 25, 2024 and sell it today you would earn a total of 327,056 from holding NYSE Composite or generate 19.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Celldex Therapeutics
Performance |
| Timeline |
NYSE Composite and Celldex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Celldex Therapeutics
Pair trading matchups for Celldex Therapeutics
Pair Trading with NYSE Composite and Celldex Therapeutics
The main advantage of trading using opposite NYSE Composite and Celldex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Celldex Therapeutics 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 Celldex Therapeutics will offset losses from the drop in Celldex Therapeutics' long position.| NYSE Composite vs. Glacier Bancorp | NYSE Composite vs. LithiumBank Resources Corp | NYSE Composite vs. Stepstone Group | NYSE Composite vs. Pintec Technology Holdings |
| Celldex Therapeutics vs. Ideaya Biosciences | Celldex Therapeutics vs. AnaptysBio | Celldex Therapeutics vs. MeiraGTx Holdings PLC | Celldex Therapeutics vs. Keros 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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