Correlation Between Celcuity LLC and Enliven Therapeutics

Can any of the company-specific risk be diversified away by investing in both Celcuity LLC and Enliven 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 Enliven 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 Enliven Therapeutics, you can compare the effects of market volatilities on Celcuity LLC and Enliven 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 Enliven Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celcuity LLC and Enliven Therapeutics.

Diversification Opportunities for Celcuity LLC and Enliven Therapeutics

0.73

Correlation Coefficient

Celcuity LLC  Enliven Therapeutics

Poor diversification

The 3 months correlation between Celcuity and Enliven is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Celcuity LLC and Enliven Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enliven 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 Enliven Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enliven Therapeutics has no effect on the direction of Celcuity LLC i.e., Celcuity LLC and Enliven Therapeutics go up and down completely randomly.

Pair Corralation between Celcuity LLC and Enliven Therapeutics

Given the investment horizon of 90 days Celcuity LLC is expected to under-perform the Enliven Therapeutics. In addition to that, Celcuity LLC is 1.23 times more volatile than Enliven Therapeutics. It trades about -0.06 of its total potential returns per unit of risk. Enliven Therapeutics is currently generating about -0.01 per unit of volatility. If you would invest  2,239  in Enliven Therapeutics on December 29, 2024 and sell it today you would lose (132.00) from holding Enliven Therapeutics or give up 5.9% 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.  Enliven 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.

Enliven Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enliven Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Enliven Therapeutics is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Celcuity LLC and Enliven Therapeutics

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

The idea behind Celcuity LLC and Enliven 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.