Correlation Between Vericel Corp and Thermo Fisher
Can any of the company-specific risk be diversified away by investing in both Vericel Corp and Thermo Fisher 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 Thermo Fisher 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 Thermo Fisher Scientific, you can compare the effects of market volatilities on Vericel Corp and Thermo Fisher 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 Thermo Fisher. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vericel Corp and Thermo Fisher.
Diversification Opportunities for Vericel Corp and Thermo Fisher
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vericel and Thermo is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Vericel Corp Ord and Thermo Fisher Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermo Fisher Scientific 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 Thermo Fisher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermo Fisher Scientific has no effect on the direction of Vericel Corp i.e., Vericel Corp and Thermo Fisher go up and down completely randomly.
Pair Corralation between Vericel Corp and Thermo Fisher
Given the investment horizon of 90 days Vericel Corp Ord is expected to generate 2.58 times more return on investment than Thermo Fisher. However, Vericel Corp is 2.58 times more volatile than Thermo Fisher Scientific. It trades about 0.39 of its potential returns per unit of risk. Thermo Fisher Scientific is currently generating about -0.26 per unit of risk. If you would invest 4,566 in Vericel Corp Ord on August 27, 2024 and sell it today you would earn a total of 1,345 from holding Vericel Corp Ord or generate 29.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vericel Corp Ord vs. Thermo Fisher Scientific
Performance |
| Timeline |
| Vericel Corp Ord |
| Thermo Fisher Scientific |
Vericel Corp and Thermo Fisher Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vericel Corp and Thermo Fisher
The main advantage of trading using opposite Vericel Corp and Thermo Fisher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vericel Corp position performs unexpectedly, Thermo Fisher 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 Thermo Fisher will offset losses from the drop in Thermo Fisher's long position.| Vericel Corp vs. Collplant Biotechnologies | Vericel Corp vs. Keros Therapeutics | Vericel Corp vs. Merus BV | Vericel Corp vs. Century Therapeutics |
| Thermo Fisher vs. Fonar | Thermo Fisher vs. Burning Rock Biotech | Thermo Fisher vs. Sera Prognostics | Thermo Fisher vs. Exagen Inc |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| CEOs Directory Screen CEOs from public companies around the world |