Correlation Between NYSE Composite and CEL SCI
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and CEL SCI 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 CEL SCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and CEL SCI Corp, you can compare the effects of market volatilities on NYSE Composite and CEL SCI 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 CEL SCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and CEL SCI.
Diversification Opportunities for NYSE Composite and CEL SCI
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and CEL is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and CEL SCI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEL SCI Corp 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 CEL SCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEL SCI Corp has no effect on the direction of NYSE Composite i.e., NYSE Composite and CEL SCI go up and down completely randomly.
Pair Corralation between NYSE Composite and CEL SCI
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.1 times more return on investment than CEL SCI. However, NYSE Composite is 10.42 times less risky than CEL SCI. It trades about 0.18 of its potential returns per unit of risk. CEL SCI Corp is currently generating about -0.02 per unit of risk. If you would invest 1,907,793 in NYSE Composite on November 28, 2024 and sell it today you would earn a total of 84,612 from holding NYSE Composite or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. CEL SCI Corp
Performance |
| Timeline |
NYSE Composite and CEL SCI Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
CEL SCI Corp
Pair trading matchups for CEL SCI
Pair Trading with NYSE Composite and CEL SCI
The main advantage of trading using opposite NYSE Composite and CEL SCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, CEL SCI 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 CEL SCI will offset losses from the drop in CEL SCI's long position.| NYSE Composite vs. Inter Parfums | NYSE Composite vs. Amkor Technology | NYSE Composite vs. Unilever PLC ADR | NYSE Composite vs. Estee Lauder Companies |
| CEL SCI vs. Beam Therapeutics | CEL SCI vs. Editas Medicine | CEL SCI vs. Caribou Biosciences | CEL SCI vs. Verve 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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