Correlation Between CNS Pharmaceuticals and Celularity

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

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

Diversification Opportunities for CNS Pharmaceuticals and Celularity

0.51

Correlation Coefficient

CNS Pharmaceuticals  Celularity

Very weak diversification

The 3 months correlation between CNS and Celularity is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding CNS Pharmaceuticals and Celularity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celularity and CNS Pharmaceuticals 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 CNS Pharmaceuticals 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 CNS Pharmaceuticals i.e., CNS Pharmaceuticals and Celularity go up and down completely randomly.

Pair Corralation between CNS Pharmaceuticals and Celularity

Given the investment horizon of 90 days CNS Pharmaceuticals is expected to generate 0.86 times more return on investment than Celularity. However, CNS Pharmaceuticals is 1.16 times less risky than Celularity. It trades about -0.05 of its potential returns per unit of risk. Celularity is currently generating about -0.07 per unit of risk. If you would invest  920.00  in CNS Pharmaceuticals on September 13, 2025 and sell it today you would lose (155.00) from holding CNS Pharmaceuticals or give up 16.85% of portfolio value over 90 days.

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

CNS Pharmaceuticals  vs.  Celularity

CNS Pharmaceuticals

Risk-Adjusted Performance

Soft

Over the last 90 days CNS Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Celularity

Risk-Adjusted Performance

Weakest

Over the last 90 days Celularity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with CNS Pharmaceuticals and Celularity

The main advantage of trading using opposite CNS Pharmaceuticals and Celularity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNS Pharmaceuticals 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 CNS Pharmaceuticals 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 Stocks Directory module to find actively traded stocks across global markets.