Correlation Between TME Pharma and Cellectis

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

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

Diversification Opportunities for TME Pharma and Cellectis

0.43

Correlation Coefficient

TME Pharma  Cellectis

Very weak diversification

The 3 months correlation between TME and Cellectis is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding TME Pharma NV and Cellectis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellectis and TME Pharma 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 TME Pharma NV are associated (or correlated) with Cellectis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellectis has no effect on the direction of TME Pharma i.e., TME Pharma and Cellectis go up and down completely randomly.

Pair Corralation between TME Pharma and Cellectis

Assuming the 90 days trading horizon TME Pharma NV is expected to generate 1.06 times more return on investment than Cellectis. However, TME Pharma is 1.06 times more volatile than Cellectis. It trades about 0.18 of its potential returns per unit of risk. Cellectis is currently generating about 0.13 per unit of risk. If you would invest  6.44  in TME Pharma NV on April 24, 2025 and sell it today you would earn a total of  4.56  from holding TME Pharma NV or generate 70.81% return on investment over 90 days.

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

TME Pharma NV  vs.  Cellectis

TME Pharma NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TME Pharma NV are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, TME Pharma reported solid returns over the last few months and may actually be approaching a breakup point.

Cellectis

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cellectis are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Cellectis reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TME Pharma and Cellectis

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

The idea behind TME Pharma NV and Cellectis 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.