Correlation Between Passage Bio and Celcuity LLC
Can any of the company-specific risk be diversified away by investing in both Passage Bio 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 Passage Bio and Celcuity LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Passage Bio and Celcuity LLC, you can compare the effects of market volatilities on Passage Bio 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 Passage Bio with a short position of Celcuity LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Passage Bio and Celcuity LLC.
Diversification Opportunities for Passage Bio and Celcuity LLC
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Passage and Celcuity is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Passage Bio and Celcuity LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celcuity LLC and Passage Bio 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 Passage Bio 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 Passage Bio i.e., Passage Bio and Celcuity LLC go up and down completely randomly.
Pair Corralation between Passage Bio and Celcuity LLC
Given the investment horizon of 90 days Passage Bio is expected to generate 2.78 times more return on investment than Celcuity LLC. However, Passage Bio is 2.78 times more volatile than Celcuity LLC. It trades about 0.03 of its potential returns per unit of risk. Celcuity LLC is currently generating about -0.02 per unit of risk. If you would invest 124.00 in Passage Bio on September 1, 2024 and sell it today you would lose (11.00) from holding Passage Bio or give up 8.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Passage Bio vs. Celcuity LLC
Performance |
| Timeline |
| Passage Bio |
| Celcuity LLC |
Passage Bio and Celcuity LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Passage Bio and Celcuity LLC
The main advantage of trading using opposite Passage Bio and Celcuity LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Passage Bio 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.| Passage Bio vs. Tff Pharmaceuticals | Passage Bio vs. Eliem Therapeutics | Passage Bio vs. Inhibrx | Passage Bio vs. Enliven Therapeutics |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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