Correlation Between Celldex Therapeutics and Provectus Biopharmaceutica

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

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

Diversification Opportunities for Celldex Therapeutics and Provectus Biopharmaceutica

0.59

Correlation Coefficient

Celldex Therapeutics  Provectus Biopharmaceutica

Very weak diversification

The 3 months correlation between Celldex and Provectus is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Celldex Therapeutics and Provectus Biopharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Provectus Biopharmaceutica and Celldex Therapeutics 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 Celldex Therapeutics are associated (or correlated) with Provectus Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Provectus Biopharmaceutica has no effect on the direction of Celldex Therapeutics i.e., Celldex Therapeutics and Provectus Biopharmaceutica go up and down completely randomly.

Pair Corralation between Celldex Therapeutics and Provectus Biopharmaceutica

If you would invest  11.00  in Provectus Biopharmaceuticals on September 22, 2024 and sell it today you would earn a total of  0.00  from holding Provectus Biopharmaceuticals or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	4.76%
Values	Daily Returns

Celldex Therapeutics  vs.  Provectus Biopharmaceuticals

Celldex Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celldex Therapeutics 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 fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Provectus Biopharmaceutica

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Provectus Biopharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Provectus Biopharmaceutica is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Celldex Therapeutics and Provectus Biopharmaceutica

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

The idea behind Celldex Therapeutics and Provectus Biopharmaceuticals 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 Commodity Directory module to find actively traded commodities issued by global exchanges.