Correlation Between MeiraGTx Holdings and Calyxt

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

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

Diversification Opportunities for MeiraGTx Holdings and Calyxt

-0.41

Correlation Coefficient

MeiraGTx Holdings  Calyxt

Very good diversification

The 3 months correlation between MeiraGTx and Calyxt is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding MeiraGTx Holdings PLC and Calyxt Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calyxt Inc and MeiraGTx Holdings 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 MeiraGTx Holdings PLC are associated (or correlated) with Calyxt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calyxt Inc has no effect on the direction of MeiraGTx Holdings i.e., MeiraGTx Holdings and Calyxt go up and down completely randomly.

Pair Corralation between MeiraGTx Holdings and Calyxt

If you would invest  630.00  in Calyxt Inc on February 1, 2024 and sell it today you would earn a total of  0.00  from holding Calyxt Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.35%
Values	Daily Returns

MeiraGTx Holdings PLC  vs.  Calyxt Inc

MeiraGTx Holdings PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MeiraGTx Holdings PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Calyxt Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with MeiraGTx Holdings and Calyxt

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

The idea behind MeiraGTx Holdings PLC and Calyxt Inc 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.