Correlation Between ChitogenX and Cellectis

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

By analyzing existing cross correlation between ChitogenX and Cellectis SA, you can compare the effects of market volatilities on ChitogenX and Cellectis 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 ChitogenX with a short position of Cellectis. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChitogenX and Cellectis.

Diversification Opportunities for ChitogenX and Cellectis

0.0

Correlation Coefficient

ChitogenX  Cellectis

Pay attention - limited upside

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

Pair Corralation between ChitogenX and Cellectis

If you would invest  254.00  in Cellectis SA on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Cellectis SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

ChitogenX  vs.  Cellectis SA

ChitogenX

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ChitogenX has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Cellectis SA

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with ChitogenX and Cellectis

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

The idea behind ChitogenX and Cellectis 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.