Correlation Between CeriBell, and MaxCyte

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

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

Diversification Opportunities for CeriBell, and MaxCyte

0.22

Correlation Coefficient

CeriBell,  MaxCyte

Modest diversification

The 3 months correlation between CeriBell, and MaxCyte is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CeriBell, and MaxCyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MaxCyte and CeriBell, 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 CeriBell, are associated (or correlated) with MaxCyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MaxCyte has no effect on the direction of CeriBell, i.e., CeriBell, and MaxCyte go up and down completely randomly.

Pair Corralation between CeriBell, and MaxCyte

Given the investment horizon of 90 days CeriBell, is expected to generate 0.98 times more return on investment than MaxCyte. However, CeriBell, is 1.02 times less risky than MaxCyte. It trades about -0.11 of its potential returns per unit of risk. MaxCyte is currently generating about -0.16 per unit of risk. If you would invest  2,586  in CeriBell, on December 30, 2024 and sell it today you would lose (640.00) from holding CeriBell, or give up 24.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CeriBell,  vs.  MaxCyte

CeriBell,

Risk-Adjusted Performance

Very Weak

Over the last 90 days CeriBell, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

MaxCyte

Risk-Adjusted Performance

Very Weak

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

Pair Trading with CeriBell, and MaxCyte

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

The idea behind CeriBell, and MaxCyte 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.