Correlation Between Quantum Si and Celularity

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

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

Diversification Opportunities for Quantum Si and Celularity

0.01

Correlation Coefficient

Quantum Si  Celularity

Significant diversification

The 3 months correlation between Quantum and Celularity is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Si incorporated and Celularity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celularity and Quantum Si 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 Quantum Si incorporated are associated (or correlated) with Celularity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celularity has no effect on the direction of Quantum Si i.e., Quantum Si and Celularity go up and down completely randomly.

Pair Corralation between Quantum Si and Celularity

Assuming the 90 days horizon Quantum Si incorporated is expected to generate 1.39 times more return on investment than Celularity. However, Quantum Si is 1.39 times more volatile than Celularity. It trades about 0.17 of its potential returns per unit of risk. Celularity is currently generating about 0.03 per unit of risk. If you would invest  9.61  in Quantum Si incorporated on September 3, 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	95.31%
Values	Daily Returns

Quantum Si incorporated  vs.  Celularity

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.

Celularity

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Celularity are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Celularity unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Quantum Si and Celularity

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

The idea behind Quantum Si incorporated and Celularity 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .