Correlation Between Pliant Therapeutics and Celldex Therapeutics
Can any of the company-specific risk be diversified away by investing in both Pliant Therapeutics 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 Pliant Therapeutics and Celldex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pliant Therapeutics and Celldex Therapeutics, you can compare the effects of market volatilities on Pliant Therapeutics 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 Pliant Therapeutics with a short position of Celldex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pliant Therapeutics and Celldex Therapeutics.
Diversification Opportunities for Pliant Therapeutics and Celldex Therapeutics
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pliant and Celldex is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Pliant Therapeutics and Celldex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celldex Therapeutics and Pliant Therapeutics 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 Pliant Therapeutics 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 Pliant Therapeutics i.e., Pliant Therapeutics and Celldex Therapeutics go up and down completely randomly.
Pair Corralation between Pliant Therapeutics and Celldex Therapeutics
Given the investment horizon of 90 days Pliant Therapeutics is expected to under-perform the Celldex Therapeutics. In addition to that, Pliant Therapeutics is 6.77 times more volatile than Celldex Therapeutics. It trades about -0.24 of its total potential returns per unit of risk. Celldex Therapeutics is currently generating about -0.16 per unit of volatility. If you would invest 2,454 in Celldex Therapeutics on November 27, 2024 and sell it today you would lose (208.00) from holding Celldex Therapeutics or give up 8.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pliant Therapeutics vs. Celldex Therapeutics
Performance |
| Timeline |
| Pliant Therapeutics |
| Celldex Therapeutics |
Pliant Therapeutics and Celldex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pliant Therapeutics and Celldex Therapeutics
The main advantage of trading using opposite Pliant Therapeutics and Celldex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pliant Therapeutics 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.| Pliant Therapeutics vs. Relay Therapeutics | Pliant Therapeutics vs. Stoke Therapeutics | Pliant Therapeutics vs. Black Diamond Therapeutics | Pliant Therapeutics vs. Arvinas |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |