Correlation Between Celldex Therapeutics and Brunswick
Can any of the company-specific risk be diversified away by investing in both Celldex Therapeutics and Brunswick 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 Brunswick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celldex Therapeutics and Brunswick, you can compare the effects of market volatilities on Celldex Therapeutics and Brunswick 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 Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celldex Therapeutics and Brunswick.
Diversification Opportunities for Celldex Therapeutics and Brunswick
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Celldex and Brunswick is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Celldex Therapeutics and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick 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 Brunswick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick has no effect on the direction of Celldex Therapeutics i.e., Celldex Therapeutics and Brunswick go up and down completely randomly.
Pair Corralation between Celldex Therapeutics and Brunswick
Given the investment horizon of 90 days Celldex Therapeutics is expected to generate 2.49 times more return on investment than Brunswick. However, Celldex Therapeutics is 2.49 times more volatile than Brunswick. It trades about 0.02 of its potential returns per unit of risk. Brunswick is currently generating about 0.05 per unit of risk. If you would invest 3,657 in Celldex Therapeutics on January 26, 2024 and sell it today you would earn a total of 45.00 from holding Celldex Therapeutics or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celldex Therapeutics vs. Brunswick
Performance |
| Timeline |
| Celldex Therapeutics |
| Brunswick |
Celldex Therapeutics and Brunswick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celldex Therapeutics and Brunswick
The main advantage of trading using opposite Celldex Therapeutics and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celldex Therapeutics position performs unexpectedly, Brunswick 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 Brunswick will offset losses from the drop in Brunswick's long position.| Celldex Therapeutics vs. Ideaya Biosciences | Celldex Therapeutics vs. AnaptysBio | Celldex Therapeutics vs. MeiraGTx Holdings PLC | Celldex Therapeutics vs. Keros TherapeuticsInc |
| Brunswick vs. MCBC Holdings | Brunswick vs. Marine Products | Brunswick vs. Winnebago Industries | Brunswick vs. LCI Industries |
Check out your portfolio center.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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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