Correlation Between Avax Techs and Celcuity LLC

Can any of the company-specific risk be diversified away by investing in both Avax Techs and Celcuity LLC 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 Avax Techs and Celcuity LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Avax Techs and Celcuity LLC, you can compare the effects of market volatilities on Avax Techs and Celcuity LLC 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 Avax Techs with a short position of Celcuity LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avax Techs and Celcuity LLC.

Diversification Opportunities for Avax Techs and Celcuity LLC

0.56

Correlation Coefficient

Avax Techs  Celcuity LLC

Very weak diversification

The 3 months correlation between Avax and Celcuity is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Avax Techs and Celcuity LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celcuity LLC and Avax Techs 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 Avax Techs are associated (or correlated) with Celcuity LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celcuity LLC has no effect on the direction of Avax Techs i.e., Avax Techs and Celcuity LLC go up and down completely randomly.

Pair Corralation between Avax Techs and Celcuity LLC

Given the investment horizon of 90 days Avax Techs is expected to under-perform the Celcuity LLC. In addition to that, Avax Techs is 1.95 times more volatile than Celcuity LLC. It trades about -0.06 of its total potential returns per unit of risk. Celcuity LLC is currently generating about 0.0 per unit of volatility. If you would invest  1,436  in Celcuity LLC on September 4, 2024 and sell it today you would lose (182.00) from holding Celcuity LLC or give up 12.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.6%
Values	Daily Returns

Avax Techs  vs.  Celcuity LLC

Avax Techs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Avax Techs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Celcuity LLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celcuity LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Avax Techs and Celcuity LLC

The main advantage of trading using opposite Avax Techs and Celcuity LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avax Techs position performs unexpectedly, Celcuity LLC 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 Celcuity LLC will offset losses from the drop in Celcuity LLC's long position.

The idea behind Avax Techs and Celcuity LLC 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.