Correlation Between Celcuity LLC and Gamida Cell

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

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

Diversification Opportunities for Celcuity LLC and Gamida Cell

0.44

Correlation Coefficient

Celcuity LLC  Gamida Cell

Very weak diversification

The 3 months correlation between Celcuity and Gamida is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Celcuity LLC and Gamida Cell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamida Cell 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 Gamida Cell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamida Cell has no effect on the direction of Celcuity LLC i.e., Celcuity LLC and Gamida Cell go up and down completely randomly.

Pair Corralation between Celcuity LLC and Gamida Cell

If you would invest  140.00  in Gamida Cell on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Gamida Cell or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Celcuity LLC  vs.  Gamida Cell

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 conflicting performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Gamida Cell

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gamida Cell has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Gamida Cell is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Celcuity LLC and Gamida Cell

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

The idea behind Celcuity LLC and Gamida Cell 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.