Correlation Between Celcuity LLC and Transgene

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

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

Diversification Opportunities for Celcuity LLC and Transgene

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Correlation Coefficient

Celcuity LLC  Transgene

Pay attention - limited upside

The 3 months correlation between Celcuity and Transgene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Celcuity LLC and Transgene SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transgene SA 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 Transgene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transgene SA has no effect on the direction of Celcuity LLC i.e., Celcuity LLC and Transgene go up and down completely randomly.

Pair Corralation between Celcuity LLC and Transgene

Given the investment horizon of 90 days Celcuity LLC is expected to generate 1.88 times more return on investment than Transgene. However, Celcuity LLC is 1.88 times more volatile than Transgene SA. It trades about 0.03 of its potential returns per unit of risk. Transgene SA is currently generating about -0.03 per unit of risk. If you would invest  1,075  in Celcuity LLC on September 12, 2024 and sell it today you would earn a total of  198.00  from holding Celcuity LLC or generate 18.42% return on investment over 90 days.

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

Celcuity LLC  vs.  Transgene SA

Celcuity LLC

Risk-Adjusted Performance

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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.

Transgene SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Transgene SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Transgene is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Celcuity LLC and Transgene

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

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