Correlation Between Vericel Corp and Vor Biopharma

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

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

Diversification Opportunities for Vericel Corp and Vor Biopharma

0.18

Correlation Coefficient

Vericel Corp  Vor Biopharma

Average diversification

The 3 months correlation between Vericel and Vor is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Vericel Corp Ord and Vor Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vor Biopharma and Vericel Corp 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 Vericel Corp Ord are associated (or correlated) with Vor Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vor Biopharma has no effect on the direction of Vericel Corp i.e., Vericel Corp and Vor Biopharma go up and down completely randomly.

Pair Corralation between Vericel Corp and Vor Biopharma

Given the investment horizon of 90 days Vericel Corp Ord is expected to generate 0.45 times more return on investment than Vor Biopharma. However, Vericel Corp Ord is 2.24 times less risky than Vor Biopharma. It trades about -0.01 of its potential returns per unit of risk. Vor Biopharma is currently generating about -0.11 per unit of risk. If you would invest  3,682  in Vericel Corp Ord on August 5, 2025 and sell it today you would lose (176.00) from holding Vericel Corp Ord or give up 4.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Vericel Corp Ord  vs.  Vor Biopharma

Vericel Corp Ord

Risk-Adjusted Performance

Weakest

Over the last 90 days Vericel Corp Ord has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Vericel Corp is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Vor Biopharma

Risk-Adjusted Performance

Weakest

Over the last 90 days Vor Biopharma has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Vericel Corp and Vor Biopharma

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

The idea behind Vericel Corp Ord and Vor Biopharma 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.