Correlation Between Itaconix Plc and Cel AI

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

By analyzing existing cross correlation between Itaconix plc and Cel AI PLC, you can compare the effects of market volatilities on Itaconix Plc and Cel AI 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 Itaconix Plc with a short position of Cel AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Itaconix Plc and Cel AI.

Diversification Opportunities for Itaconix Plc and Cel AI

-0.31

Correlation Coefficient

Itaconix Plc  Cel AI

Very good diversification

The 3 months correlation between Itaconix and Cel is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Itaconix plc and Cel AI PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cel AI PLC and Itaconix Plc 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 Itaconix plc are associated (or correlated) with Cel AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cel AI PLC has no effect on the direction of Itaconix Plc i.e., Itaconix Plc and Cel AI go up and down completely randomly.

Pair Corralation between Itaconix Plc and Cel AI

Assuming the 90 days trading horizon Itaconix Plc is expected to generate 2.25 times less return on investment than Cel AI. But when comparing it to its historical volatility, Itaconix plc is 5.97 times less risky than Cel AI. It trades about 0.15 of its potential returns per unit of risk. Cel AI PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  22.00  in Cel AI PLC on April 22, 2025 and sell it today you would lose (3.00) from holding Cel AI PLC or give up 13.64% of portfolio value over 90 days.

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

Itaconix plc  vs.  Cel AI PLC

Itaconix plc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Itaconix plc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Itaconix Plc exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cel AI PLC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cel AI PLC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Cel AI unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Itaconix Plc and Cel AI

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

The idea behind Itaconix plc and Cel AI PLC 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.