Correlation Between Celldex Therapeutics and OncoSec Medical

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

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

Diversification Opportunities for Celldex Therapeutics and OncoSec Medical

0.77

Correlation Coefficient

Celldex Therapeutics  OncoSec Medical

Poor diversification

The 3 months correlation between Celldex and OncoSec is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Celldex Therapeutics and OncoSec Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OncoSec Medical and Celldex 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 Celldex Therapeutics are associated (or correlated) with OncoSec Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OncoSec Medical has no effect on the direction of Celldex Therapeutics i.e., Celldex Therapeutics and OncoSec Medical go up and down completely randomly.

Pair Corralation between Celldex Therapeutics and OncoSec Medical

If you would invest  5.84  in OncoSec Medical on September 28, 2024 and sell it today you would earn a total of  0.00  from holding OncoSec Medical or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.61%
Values	Daily Returns

Celldex Therapeutics  vs.  OncoSec Medical

Celldex Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celldex Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain fairly 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.

OncoSec Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OncoSec Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, OncoSec Medical is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Celldex Therapeutics and OncoSec Medical

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

The idea behind Celldex Therapeutics and OncoSec Medical 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 Commodity Directory module to find actively traded commodities issued by global exchanges.