Correlation Between Vericel Corp and Neximmune

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

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

Diversification Opportunities for Vericel Corp and Neximmune

0.0

Correlation Coefficient

Vericel Corp  Neximmune

Pay attention - limited upside

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

Pair Corralation between Vericel Corp and Neximmune

If you would invest  5,726  in Vericel Corp Ord on November 20, 2024 and sell it today you would lose (17.00) from holding Vericel Corp Ord or give up 0.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Vericel Corp Ord  vs.  Neximmune

Vericel Corp Ord

Risk-Adjusted Performance

Weak

Over the last 90 days Vericel Corp Ord has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Vericel Corp is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Neximmune

Risk-Adjusted Performance

Very Weak

Over the last 90 days Neximmune has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Neximmune is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Vericel Corp and Neximmune

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

The idea behind Vericel Corp Ord and Neximmune 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.