Correlation Between Vericel Corp and Histogen
Can any of the company-specific risk be diversified away by investing in both Vericel Corp and Histogen 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 Vericel Corp and Histogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vericel Corp Ord and Histogen, you can compare the effects of market volatilities on Vericel Corp and Histogen 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 Vericel Corp with a short position of Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vericel Corp and Histogen.
Diversification Opportunities for Vericel Corp and Histogen
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vericel and Histogen is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Vericel Corp Ord and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen and Vericel Corp 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 Vericel Corp Ord are associated (or correlated) with Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of Vericel Corp i.e., Vericel Corp and Histogen go up and down completely randomly.
Pair Corralation between Vericel Corp and Histogen
Given the investment horizon of 90 days Vericel Corp Ord is expected to generate 0.16 times more return on investment than Histogen. However, Vericel Corp Ord is 6.19 times less risky than Histogen. It trades about 0.42 of its potential returns per unit of risk. Histogen is currently generating about -0.25 per unit of risk. If you would invest 4,437 in Vericel Corp Ord on September 3, 2024 and sell it today you would earn a total of 1,377 from holding Vericel Corp Ord or generate 31.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vericel Corp Ord vs. Histogen
Performance |
| Timeline |
| Vericel Corp Ord |
| Histogen |
Vericel Corp and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vericel Corp and Histogen
The main advantage of trading using opposite Vericel Corp and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vericel Corp position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| Vericel Corp vs. Collplant Biotechnologies | Vericel Corp vs. Keros Therapeutics | Vericel Corp vs. Merus BV | Vericel Corp vs. Century Therapeutics |
| Histogen vs. Virax Biolabs Group | Histogen vs. Altamira Therapeutics | Histogen vs. Aileron Therapeutics | Histogen vs. Artelo Biosciences |
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 Stocks Directory module to find actively traded stocks across global markets.
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