Correlation Between Celyad SA and Argen X

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

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

Diversification Opportunities for Celyad SA and Argen X

-0.24

Correlation Coefficient

Celyad SA  Argen X

Very good diversification

The 3 months correlation between Celyad and Argen is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Celyad SA and Argen X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argen X and Celyad SA 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 Celyad SA are associated (or correlated) with Argen X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argen X has no effect on the direction of Celyad SA i.e., Celyad SA and Argen X go up and down completely randomly.

Pair Corralation between Celyad SA and Argen X

Assuming the 90 days trading horizon Celyad SA is expected to generate 7.96 times more return on investment than Argen X. However, Celyad SA is 7.96 times more volatile than Argen X. It trades about 0.01 of its potential returns per unit of risk. Argen X is currently generating about -0.07 per unit of risk. If you would invest  71.00  in Celyad SA on December 30, 2024 and sell it today you would lose (16.00) from holding Celyad SA or give up 22.54% of portfolio value over 90 days.

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

Celyad SA  vs.  Argen X

Celyad SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Celyad SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak basic indicators, Celyad SA may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Argen X

Risk-Adjusted Performance

Very Weak

Over the last 90 days Argen X has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Celyad SA and Argen X

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

The idea behind Celyad SA and Argen X 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.