Correlation Between CEL SCI and Assertio Therapeutics

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

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

Diversification Opportunities for CEL SCI and Assertio Therapeutics

0.46

Correlation Coefficient

CEL SCI  Assertio Therapeutics

Very weak diversification

The 3 months correlation between CEL and Assertio is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CEL SCI Corp and Assertio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assertio Therapeutics and CEL SCI 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 CEL SCI Corp are associated (or correlated) with Assertio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assertio Therapeutics has no effect on the direction of CEL SCI i.e., CEL SCI and Assertio Therapeutics go up and down completely randomly.

Pair Corralation between CEL SCI and Assertio Therapeutics

Considering the 90-day investment horizon CEL SCI Corp is expected to generate 2.81 times more return on investment than Assertio Therapeutics. However, CEL SCI is 2.81 times more volatile than Assertio Therapeutics. It trades about 0.26 of its potential returns per unit of risk. Assertio Therapeutics is currently generating about 0.16 per unit of risk. If you would invest  229.00  in CEL SCI Corp on June 29, 2025 and sell it today you would earn a total of  666.00  from holding CEL SCI Corp or generate 290.83% return on investment over 90 days.

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

CEL SCI Corp  vs.  Assertio Therapeutics

CEL SCI Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CEL SCI Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, CEL SCI displayed solid returns over the last few months and may actually be approaching a breakup point.

Assertio Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Assertio Therapeutics are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Assertio Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CEL SCI and Assertio Therapeutics

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

The idea behind CEL SCI Corp and Assertio Therapeutics 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.