Correlation Between Zenith Capital and Celcuity LLC

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

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

Diversification Opportunities for Zenith Capital and Celcuity LLC

-0.13

Correlation Coefficient

Zenith Capital  Celcuity LLC

Good diversification

The 3 months correlation between Zenith and Celcuity is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Zenith Capital Corp and Celcuity LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celcuity LLC and Zenith Capital 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 Zenith Capital Corp 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 Zenith Capital i.e., Zenith Capital and Celcuity LLC go up and down completely randomly.

Pair Corralation between Zenith Capital and Celcuity LLC

Assuming the 90 days horizon Zenith Capital Corp is expected to generate 87.86 times more return on investment than Celcuity LLC. However, Zenith Capital is 87.86 times more volatile than Celcuity LLC. It trades about 0.26 of its potential returns per unit of risk. Celcuity LLC is currently generating about -0.06 per unit of risk. If you would invest  10.00  in Zenith Capital Corp on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Zenith Capital Corp or generate 0.0% return on investment over 90 days.

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

Zenith Capital Corp  vs.  Celcuity LLC

Zenith Capital Corp

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Zenith Capital Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, Zenith Capital reported solid returns over the last few months and may actually be approaching a breakup point.

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 latest conflicting performance, the Stock's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Zenith Capital and Celcuity LLC

The main advantage of trading using opposite Zenith Capital and Celcuity LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zenith Capital 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 Zenith Capital Corp 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.