Correlation Between Poxel SA and Cellectis

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

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

Diversification Opportunities for Poxel SA and Cellectis

0.34

Correlation Coefficient

Poxel SA  Cellectis

Weak diversification

The 3 months correlation between Poxel and Cellectis is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Poxel SA and Cellectis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellectis and Poxel 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 Poxel SA 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 has no effect on the direction of Poxel SA i.e., Poxel SA and Cellectis go up and down completely randomly.

Pair Corralation between Poxel SA and Cellectis

Assuming the 90 days trading horizon Poxel SA is expected to generate 2.12 times more return on investment than Cellectis. However, Poxel SA is 2.12 times more volatile than Cellectis. It trades about 0.27 of its potential returns per unit of risk. Cellectis is currently generating about 0.06 per unit of risk. If you would invest  13.00  in Poxel SA on October 21, 2024 and sell it today you would earn a total of  8.00  from holding Poxel SA or generate 61.54% return on investment over 90 days.

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

Poxel SA  vs.  Cellectis

Poxel SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Poxel SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Cellectis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cellectis has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak 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 Poxel SA and Cellectis

The main advantage of trading using opposite Poxel SA and Cellectis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poxel SA 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 Poxel SA and Cellectis 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.