Correlation Between C4 Therapeutics and Celcuity LLC

Can any of the company-specific risk be diversified away by investing in both C4 Therapeutics and Celcuity LLC 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 C4 Therapeutics and Celcuity LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C4 Therapeutics and Celcuity LLC, you can compare the effects of market volatilities on C4 Therapeutics and Celcuity LLC 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 C4 Therapeutics with a short position of Celcuity LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of C4 Therapeutics and Celcuity LLC.

Diversification Opportunities for C4 Therapeutics and Celcuity LLC

0.78

Correlation Coefficient

C4 Therapeutics  Celcuity LLC

Poor diversification

The 3 months correlation between CCCC and Celcuity is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding C4 Therapeutics and Celcuity LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celcuity LLC and C4 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 C4 Therapeutics are associated (or correlated) with Celcuity LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celcuity LLC has no effect on the direction of C4 Therapeutics i.e., C4 Therapeutics and Celcuity LLC go up and down completely randomly.

Pair Corralation between C4 Therapeutics and Celcuity LLC

Given the investment horizon of 90 days C4 Therapeutics is expected to under-perform the Celcuity LLC. In addition to that, C4 Therapeutics is 1.66 times more volatile than Celcuity LLC. It trades about -0.06 of its total potential returns per unit of risk. Celcuity LLC is currently generating about -0.09 per unit of volatility. If you would invest  1,562  in Celcuity LLC on August 31, 2024 and sell it today you would lose (277.00) from holding Celcuity LLC or give up 17.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

C4 Therapeutics  vs.  Celcuity LLC

C4 Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days C4 Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 conflicting performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with C4 Therapeutics and Celcuity LLC

The main advantage of trading using opposite C4 Therapeutics and Celcuity LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C4 Therapeutics position performs unexpectedly, Celcuity LLC 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 Celcuity LLC will offset losses from the drop in Celcuity LLC's long position.

The idea behind C4 Therapeutics and Celcuity LLC 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.