Correlation Between Celcuity LLC and Anebulo Pharmaceuticals

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

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

Diversification Opportunities for Celcuity LLC and Anebulo Pharmaceuticals

0.65

Correlation Coefficient

Celcuity LLC  Anebulo Pharmaceuticals

Poor diversification

The 3 months correlation between Celcuity and Anebulo is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Celcuity LLC and Anebulo Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anebulo Pharmaceuticals and Celcuity LLC 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 Celcuity LLC are associated (or correlated) with Anebulo Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anebulo Pharmaceuticals has no effect on the direction of Celcuity LLC i.e., Celcuity LLC and Anebulo Pharmaceuticals go up and down completely randomly.

Pair Corralation between Celcuity LLC and Anebulo Pharmaceuticals

Given the investment horizon of 90 days Celcuity LLC is expected to generate 0.41 times more return on investment than Anebulo Pharmaceuticals. However, Celcuity LLC is 2.43 times less risky than Anebulo Pharmaceuticals. It trades about -0.06 of its potential returns per unit of risk. Anebulo Pharmaceuticals is currently generating about -0.07 per unit of risk. If you would invest  1,666  in Celcuity LLC on September 22, 2024 and sell it today you would lose (420.00) from holding Celcuity LLC or give up 25.21% of portfolio value over 90 days.

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

Celcuity LLC  vs.  Anebulo Pharmaceuticals

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 latest conflicting performance, the Stock's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Anebulo Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anebulo Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Celcuity LLC and Anebulo Pharmaceuticals

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

The idea behind Celcuity LLC and Anebulo Pharmaceuticals 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.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.