Correlation Between MaxCyte and Cerus

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

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

Diversification Opportunities for MaxCyte and Cerus

0.33

Correlation Coefficient

MaxCyte  Cerus

Weak diversification

The 3 months correlation between MaxCyte and Cerus is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding MaxCyte and Cerus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerus and MaxCyte 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 MaxCyte are associated (or correlated) with Cerus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerus has no effect on the direction of MaxCyte i.e., MaxCyte and Cerus go up and down completely randomly.

Pair Corralation between MaxCyte and Cerus

Given the investment horizon of 90 days MaxCyte is expected to generate 0.88 times more return on investment than Cerus. However, MaxCyte is 1.14 times less risky than Cerus. It trades about 0.04 of its potential returns per unit of risk. Cerus is currently generating about -0.02 per unit of risk. If you would invest  400.00  in MaxCyte on September 12, 2024 and sell it today you would earn a total of  19.00  from holding MaxCyte or generate 4.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

MaxCyte  vs.  Cerus

MaxCyte

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MaxCyte are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, MaxCyte may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Cerus

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with MaxCyte and Cerus

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

The idea behind MaxCyte and Cerus 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.