Correlation Between Celcuity LLC and ELYM Old

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

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

Diversification Opportunities for Celcuity LLC and ELYM Old

0.74

Correlation Coefficient

Celcuity LLC  ELYM Old

Poor diversification

The 3 months correlation between Celcuity and ELYM is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Celcuity LLC and ELYM Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELYM Old 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 ELYM Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELYM Old has no effect on the direction of Celcuity LLC i.e., Celcuity LLC and ELYM Old go up and down completely randomly.

Pair Corralation between Celcuity LLC and ELYM Old

Given the investment horizon of 90 days Celcuity LLC is expected to generate 0.7 times more return on investment than ELYM Old. However, Celcuity LLC is 1.43 times less risky than ELYM Old. It trades about -0.13 of its potential returns per unit of risk. ELYM Old is currently generating about -0.21 per unit of risk. If you would invest  1,585  in Celcuity LLC on October 9, 2024 and sell it today you would lose (268.00) from holding Celcuity LLC or give up 16.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	47.5%
Values	Daily Returns

Celcuity LLC  vs.  ELYM Old

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 rather sound essential indicators, Celcuity LLC is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

ELYM Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ELYM Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Celcuity LLC and ELYM Old

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

The idea behind Celcuity LLC and ELYM Old 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.