Correlation Between ALTEOGEN and Celltrion Pharm

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

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

Diversification Opportunities for ALTEOGEN and Celltrion Pharm

0.0

Correlation Coefficient

ALTEOGEN  Celltrion Pharm

Pay attention - limited upside

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

Pair Corralation between ALTEOGEN and Celltrion Pharm

If you would invest (100.00) in Celltrion Pharm on October 1, 2024 and sell it today you would earn a total of  100.00  from holding Celltrion Pharm or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ALTEOGEN  vs.  Celltrion Pharm

ALTEOGEN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ALTEOGEN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ALTEOGEN is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Celltrion Pharm

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celltrion Pharm has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with ALTEOGEN and Celltrion Pharm

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

The idea behind ALTEOGEN and Celltrion Pharm 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.