Correlation Between Timken and Celsion Corp
Can any of the company-specific risk be diversified away by investing in both Timken and Celsion Corp 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 Timken and Celsion Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Timken Company and Celsion Corp, you can compare the effects of market volatilities on Timken and Celsion Corp 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 Timken with a short position of Celsion Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timken and Celsion Corp.
Diversification Opportunities for Timken and Celsion Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Timken and Celsion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Timken Company and Celsion Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsion Corp and Timken 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 Timken Company are associated (or correlated) with Celsion Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsion Corp has no effect on the direction of Timken i.e., Timken and Celsion Corp go up and down completely randomly.
Pair Corralation between Timken and Celsion Corp
If you would invest 145.00 in Celsion Corp on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Celsion Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Timken Company vs. Celsion Corp
Performance |
| Timeline |
| Timken Company |
| Celsion Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Timken and Celsion Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timken and Celsion Corp
The main advantage of trading using opposite Timken and Celsion Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timken position performs unexpectedly, Celsion Corp 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 Celsion Corp will offset losses from the drop in Celsion Corp's long position.The idea behind Timken Company and Celsion Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Celsion Corp vs. Rivian Automotive | Celsion Corp vs. Ambev SA ADR | Celsion Corp vs. Aptiv PLC | Celsion Corp vs. Keurig Dr Pepper |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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