Correlation Between Celldex Therapeutics and Biohaven Pharmaceutical

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

By analyzing existing cross correlation between Celldex Therapeutics and Biohaven Pharmaceutical Holding, you can compare the effects of market volatilities on Celldex Therapeutics and Biohaven Pharmaceutical 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 Biohaven Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celldex Therapeutics and Biohaven Pharmaceutical.

Diversification Opportunities for Celldex Therapeutics and Biohaven Pharmaceutical

0.23

Correlation Coefficient

Celldex Therapeutics  Biohaven Pharmaceutical

Modest diversification

The 3 months correlation between Celldex and Biohaven is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Celldex Therapeutics and Biohaven Pharmaceutical Holdin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biohaven Pharmaceutical 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 Biohaven Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biohaven Pharmaceutical has no effect on the direction of Celldex Therapeutics i.e., Celldex Therapeutics and Biohaven Pharmaceutical go up and down completely randomly.

Pair Corralation between Celldex Therapeutics and Biohaven Pharmaceutical

Given the investment horizon of 90 days Celldex Therapeutics is expected to generate 0.41 times more return on investment than Biohaven Pharmaceutical. However, Celldex Therapeutics is 2.43 times less risky than Biohaven Pharmaceutical. It trades about 0.07 of its potential returns per unit of risk. Biohaven Pharmaceutical Holding is currently generating about 0.01 per unit of risk. If you would invest  2,450  in Celldex Therapeutics on September 13, 2025 and sell it today you would earn a total of  301.00  from holding Celldex Therapeutics or generate 12.29% return on investment over 90 days.

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

Celldex Therapeutics  vs.  Biohaven Pharmaceutical Holdin

Celldex Therapeutics

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Celldex Therapeutics are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Celldex Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Biohaven Pharmaceutical

Risk-Adjusted Performance

Weakest

Over the last 90 days Biohaven Pharmaceutical Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Biohaven Pharmaceutical is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Celldex Therapeutics and Biohaven Pharmaceutical

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

The idea behind Celldex Therapeutics and Biohaven Pharmaceutical Holding 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.