Correlation Between Celcuity LLC and Checkpoint Therapeutics

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

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

Diversification Opportunities for Celcuity LLC and Checkpoint Therapeutics

0.63

Correlation Coefficient

Celcuity LLC  Checkpoint Therapeutics

Poor diversification

The 3 months correlation between Celcuity and Checkpoint is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Celcuity LLC and Checkpoint Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Checkpoint Therapeutics 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 Checkpoint Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Checkpoint Therapeutics has no effect on the direction of Celcuity LLC i.e., Celcuity LLC and Checkpoint Therapeutics go up and down completely randomly.

Pair Corralation between Celcuity LLC and Checkpoint Therapeutics

Given the investment horizon of 90 days Celcuity LLC is expected to under-perform the Checkpoint Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Celcuity LLC is 1.18 times less risky than Checkpoint Therapeutics. The stock trades about -0.23 of its potential returns per unit of risk. The Checkpoint Therapeutics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  284.00  in Checkpoint Therapeutics on December 2, 2024 and sell it today you would earn a total of  2.00  from holding Checkpoint Therapeutics or generate 0.7% return on investment over 90 days.

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

Celcuity LLC  vs.  Checkpoint Therapeutics

Celcuity LLC

Risk-Adjusted Performance

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 April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Checkpoint Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Checkpoint Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic 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 Celcuity LLC and Checkpoint Therapeutics

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

The idea behind Celcuity LLC and Checkpoint Therapeutics 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.