Correlation Between Tempest Therapeutics and Cellectar Biosciences

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

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

Diversification Opportunities for Tempest Therapeutics and Cellectar Biosciences

-0.05

Correlation Coefficient

Tempest Therapeutics  Cellectar Biosciences

Good diversification

The 3 months correlation between Tempest and Cellectar is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Tempest Therapeutics and Cellectar Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellectar Biosciences and Tempest 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 Tempest Therapeutics are associated (or correlated) with Cellectar Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellectar Biosciences has no effect on the direction of Tempest Therapeutics i.e., Tempest Therapeutics and Cellectar Biosciences go up and down completely randomly.

Pair Corralation between Tempest Therapeutics and Cellectar Biosciences

Given the investment horizon of 90 days Tempest Therapeutics is expected to generate 0.49 times more return on investment than Cellectar Biosciences. However, Tempest Therapeutics is 2.04 times less risky than Cellectar Biosciences. It trades about 0.13 of its potential returns per unit of risk. Cellectar Biosciences is currently generating about -0.03 per unit of risk. If you would invest  666.00  in Tempest Therapeutics on May 17, 2025 and sell it today you would earn a total of  282.00  from holding Tempest Therapeutics or generate 42.34% return on investment over 90 days.

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

Tempest Therapeutics  vs.  Cellectar Biosciences

Tempest Therapeutics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Tempest Therapeutics are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Tempest Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cellectar Biosciences

Risk-Adjusted Performance

Weakest

Over the last 90 days Cellectar Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Tempest Therapeutics and Cellectar Biosciences

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

The idea behind Tempest Therapeutics and Cellectar Biosciences 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.