Correlation Between Celularity and Quantum Si

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

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

Diversification Opportunities for Celularity and Quantum Si

0.03

Correlation Coefficient

Celularity  Quantum Si

Significant diversification

The 3 months correlation between Celularity and Quantum is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Celularity and Quantum Si incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum Si incorporated and Celularity 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 Celularity are associated (or correlated) with Quantum Si. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum Si incorporated has no effect on the direction of Celularity i.e., Celularity and Quantum Si go up and down completely randomly.

Pair Corralation between Celularity and Quantum Si

Assuming the 90 days horizon Celularity is expected to generate 1.13 times less return on investment than Quantum Si. In addition to that, Celularity is 1.01 times more volatile than Quantum Si incorporated. It trades about 0.15 of its total potential returns per unit of risk. Quantum Si incorporated is currently generating about 0.17 per unit of volatility. If you would invest  9.61  in Quantum Si incorporated on August 31, 2024 and sell it today you would earn a total of  27.39  from holding Quantum Si incorporated or generate 285.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	73.77%
Values	Daily Returns

Celularity  vs.  Quantum Si incorporated

Celularity

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Celularity are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Celularity showed solid returns over the last few months and may actually be approaching a breakup point.

Quantum Si incorporated

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quantum Si incorporated are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Quantum Si showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Celularity and Quantum Si

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

The idea behind Celularity and Quantum Si incorporated 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..