Correlation Between Celcuity LLC and Genelux Common

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

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

Diversification Opportunities for Celcuity LLC and Genelux Common

-0.08

Correlation Coefficient

Celcuity LLC  Genelux Common

Good diversification

The 3 months correlation between Celcuity and Genelux is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Celcuity LLC and Genelux Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genelux Common 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 Genelux Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genelux Common has no effect on the direction of Celcuity LLC i.e., Celcuity LLC and Genelux Common go up and down completely randomly.

Pair Corralation between Celcuity LLC and Genelux Common

Given the investment horizon of 90 days Celcuity LLC is expected to under-perform the Genelux Common. But the stock apears to be less risky and, when comparing its historical volatility, Celcuity LLC is 1.62 times less risky than Genelux Common. The stock trades about -0.04 of its potential returns per unit of risk. The Genelux Common is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  227.00  in Genelux Common on December 20, 2024 and sell it today you would earn a total of  173.00  from holding Genelux Common or generate 76.21% return on investment over 90 days.

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

Celcuity LLC  vs.  Genelux Common

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 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.

Genelux Common

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Genelux Common are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Genelux Common showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Celcuity LLC and Genelux Common

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

The idea behind Celcuity LLC and Genelux Common 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.