Correlation Between BlackRock ESG and Celldex Therapeutics

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

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

Diversification Opportunities for BlackRock ESG and Celldex Therapeutics

0.73

Correlation Coefficient

BlackRock ESG  Celldex Therapeutics

Poor diversification

The 3 months correlation between BlackRock and Celldex is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ESG Capital and Celldex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celldex Therapeutics and BlackRock ESG 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 BlackRock ESG Capital are associated (or correlated) with Celldex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celldex Therapeutics has no effect on the direction of BlackRock ESG i.e., BlackRock ESG and Celldex Therapeutics go up and down completely randomly.

Pair Corralation between BlackRock ESG and Celldex Therapeutics

Given the investment horizon of 90 days BlackRock ESG is expected to generate 1.47 times less return on investment than Celldex Therapeutics. But when comparing it to its historical volatility, BlackRock ESG Capital is 5.38 times less risky than Celldex Therapeutics. It trades about 0.21 of its potential returns per unit of risk. Celldex Therapeutics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,029  in Celldex Therapeutics on May 3, 2025 and sell it today you would earn a total of  190.00  from holding Celldex Therapeutics or generate 9.36% return on investment over 90 days.

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

BlackRock ESG Capital  vs.  Celldex Therapeutics

BlackRock ESG Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock ESG Capital are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BlackRock ESG may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Celldex Therapeutics

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Celldex Therapeutics are ranked lower than 4 (%) 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.

Pair Trading with BlackRock ESG and Celldex Therapeutics

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

The idea behind BlackRock ESG Capital and Celldex 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 Stocks Directory module to find actively traded stocks across global markets.