Correlation Between Vericel Corp and Aditxt

Can any of the company-specific risk be diversified away by investing in both Vericel Corp and Aditxt 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 Aditxt 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 Aditxt Inc, you can compare the effects of market volatilities on Vericel Corp and Aditxt 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 Aditxt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vericel Corp and Aditxt.

Diversification Opportunities for Vericel Corp and Aditxt

-0.49

Correlation Coefficient

Vericel Corp  Aditxt

Very good diversification

The 3 months correlation between Vericel and Aditxt is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Vericel Corp Ord and Aditxt Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aditxt Inc 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 Aditxt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aditxt Inc has no effect on the direction of Vericel Corp i.e., Vericel Corp and Aditxt go up and down completely randomly.

Pair Corralation between Vericel Corp and Aditxt

Given the investment horizon of 90 days Vericel Corp Ord is expected to generate 0.47 times more return on investment than Aditxt. However, Vericel Corp Ord is 2.12 times less risky than Aditxt. It trades about 0.09 of its potential returns per unit of risk. Aditxt Inc is currently generating about -0.18 per unit of risk. If you would invest  4,082  in Vericel Corp Ord on January 24, 2024 and sell it today you would earn a total of  456.00  from holding Vericel Corp Ord or generate 11.17% return on investment over 90 days.

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

Vericel Corp Ord  vs.  Aditxt Inc

Vericel Corp Ord

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vericel Corp Ord are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating technical and fundamental indicators, Vericel Corp may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Aditxt Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aditxt Inc 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 May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Vericel Corp and Aditxt

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

The idea behind Vericel Corp Ord and Aditxt 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..