Correlation Between Celldex Therapeutics and United States
Can any of the company-specific risk be diversified away by investing in both Celldex Therapeutics and United States 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 United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celldex Therapeutics and United States Gasoline, you can compare the effects of market volatilities on Celldex Therapeutics and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celldex Therapeutics and United States.
Diversification Opportunities for Celldex Therapeutics and United States
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Celldex and United is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Celldex Therapeutics and United States Gasoline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Gasoline 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Gasoline has no effect on the direction of Celldex Therapeutics i.e., Celldex Therapeutics and United States go up and down completely randomly.
Pair Corralation between Celldex Therapeutics and United States
Given the investment horizon of 90 days Celldex Therapeutics is expected to under-perform the United States. In addition to that, Celldex Therapeutics is 1.91 times more volatile than United States Gasoline. It trades about -0.19 of its total potential returns per unit of risk. United States Gasoline is currently generating about 0.03 per unit of volatility. If you would invest 7,126 in United States Gasoline on January 25, 2024 and sell it today you would earn a total of 46.00 from holding United States Gasoline or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celldex Therapeutics vs. United States Gasoline
Performance |
| Timeline |
| Celldex Therapeutics |
| United States Gasoline |
Celldex Therapeutics and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celldex Therapeutics and United States
The main advantage of trading using opposite Celldex Therapeutics and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celldex Therapeutics position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Celldex Therapeutics vs. Ideaya Biosciences | Celldex Therapeutics vs. AnaptysBio | Celldex Therapeutics vs. MeiraGTx Holdings PLC | Celldex Therapeutics vs. Keros TherapeuticsInc |
| United States vs. HUMANA INC | United States vs. Aquagold International | United States vs. Barloworld Ltd ADR | United States vs. Morningstar Unconstrained Allocation |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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