Correlation Between Vericel Corp and Exicure
Can any of the company-specific risk be diversified away by investing in both Vericel Corp and Exicure 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 Exicure 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 Exicure, you can compare the effects of market volatilities on Vericel Corp and Exicure 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 Exicure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vericel Corp and Exicure.
Diversification Opportunities for Vericel Corp and Exicure
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vericel and Exicure is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Vericel Corp Ord and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure 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 Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of Vericel Corp i.e., Vericel Corp and Exicure go up and down completely randomly.
Pair Corralation between Vericel Corp and Exicure
Given the investment horizon of 90 days Vericel Corp is expected to generate 10.32 times less return on investment than Exicure. But when comparing it to its historical volatility, Vericel Corp Ord is 8.7 times less risky than Exicure. It trades about 0.43 of its potential returns per unit of risk. Exicure is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest 303.00 in Exicure on September 1, 2024 and sell it today you would earn a total of 2,646 from holding Exicure or generate 873.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vericel Corp Ord vs. Exicure
Performance |
| Timeline |
| Vericel Corp Ord |
| Exicure |
Vericel Corp and Exicure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vericel Corp and Exicure
The main advantage of trading using opposite Vericel Corp and Exicure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vericel Corp position performs unexpectedly, Exicure 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 Exicure will offset losses from the drop in Exicure's long position.| Vericel Corp vs. Tff Pharmaceuticals | Vericel Corp vs. Eliem Therapeutics | Vericel Corp vs. Inhibrx | Vericel Corp vs. Enliven Therapeutics |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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