Correlation Between Ventyx Biosciences and Celldex Therapeutics

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

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

Diversification Opportunities for Ventyx Biosciences and Celldex Therapeutics

0.22

Correlation Coefficient

Ventyx Biosciences  Celldex Therapeutics

Modest diversification

The 3 months correlation between Ventyx and Celldex is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ventyx Biosciences and Celldex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celldex Therapeutics and Ventyx Biosciences 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 Ventyx Biosciences 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 Ventyx Biosciences i.e., Ventyx Biosciences and Celldex Therapeutics go up and down completely randomly.

Pair Corralation between Ventyx Biosciences and Celldex Therapeutics

Given the investment horizon of 90 days Ventyx Biosciences is expected to generate 1.58 times more return on investment than Celldex Therapeutics. However, Ventyx Biosciences is 1.58 times more volatile than Celldex Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Celldex Therapeutics is currently generating about 0.0 per unit of risk. If you would invest  206.00  in Ventyx Biosciences on July 2, 2025 and sell it today you would earn a total of  95.00  from holding Ventyx Biosciences or generate 46.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.65%
Values	Daily Returns

Ventyx Biosciences  vs.  Celldex Therapeutics

Ventyx Biosciences

Risk-Adjusted Performance

Fair

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

Celldex Therapeutics

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Celldex Therapeutics are ranked lower than 6 (%) 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 Ventyx Biosciences and Celldex Therapeutics

The main advantage of trading using opposite Ventyx Biosciences and Celldex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ventyx Biosciences 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 Ventyx Biosciences 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.

Check out your portfolio center.

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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.