Correlation Between Celcuity LLC and Abcam Plc

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

By analyzing existing cross correlation between Celcuity LLC and Abcam plc, you can compare the effects of market volatilities on Celcuity LLC and Abcam Plc 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 Celcuity LLC with a short position of Abcam Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celcuity LLC and Abcam Plc.

Diversification Opportunities for Celcuity LLC and Abcam Plc

0.0

Correlation Coefficient

Celcuity LLC  Abcam Plc

Pay attention - limited upside

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

Pair Corralation between Celcuity LLC and Abcam Plc

If you would invest  2,225  in Abcam plc on June 30, 2024 and sell it today you would earn a total of  0.00  from holding Abcam plc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Celcuity LLC  vs.  Abcam plc

Celcuity LLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celcuity LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Abcam plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Abcam plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Abcam Plc is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Celcuity LLC and Abcam Plc

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

The idea behind Celcuity LLC and Abcam plc 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.