Correlation Between Vericel Corp and NextCure
Can any of the company-specific risk be diversified away by investing in both Vericel Corp and NextCure 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 NextCure 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 NextCure, you can compare the effects of market volatilities on Vericel Corp and NextCure 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 NextCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vericel Corp and NextCure.
Diversification Opportunities for Vericel Corp and NextCure
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vericel and NextCure is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Vericel Corp Ord and NextCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextCure 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 NextCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextCure has no effect on the direction of Vericel Corp i.e., Vericel Corp and NextCure go up and down completely randomly.
Pair Corralation between Vericel Corp and NextCure
Given the investment horizon of 90 days Vericel Corp Ord is expected to generate 0.47 times more return on investment than NextCure. However, Vericel Corp Ord is 2.11 times less risky than NextCure. It trades about 0.19 of its potential returns per unit of risk. NextCure is currently generating about 0.06 per unit of risk. If you would invest 5,491 in Vericel Corp Ord on November 1, 2024 and sell it today you would earn a total of 434.00 from holding Vericel Corp Ord or generate 7.9% 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. NextCure
Performance |
| Timeline |
| Vericel Corp Ord |
| NextCure |
Vericel Corp and NextCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vericel Corp and NextCure
The main advantage of trading using opposite Vericel Corp and NextCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vericel Corp position performs unexpectedly, NextCure 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 NextCure will offset losses from the drop in NextCure's long position.| Vericel Corp vs. Collplant Biotechnologies | Vericel Corp vs. Keros Therapeutics | Vericel Corp vs. Merus BV | Vericel Corp vs. Century Therapeutics |
| NextCure vs. CytomX Therapeutics | NextCure vs. Spero Therapeutics | NextCure vs. Instil Bio | NextCure vs. Assembly 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stocks Directory Find actively traded stocks across global markets |