Correlation Between Alpine Immune and Candel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Alpine Immune and Candel 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 Alpine Immune and Candel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpine Immune Sciences and Candel Therapeutics, you can compare the effects of market volatilities on Alpine Immune and Candel 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 Alpine Immune with a short position of Candel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpine Immune and Candel Therapeutics.
Diversification Opportunities for Alpine Immune and Candel Therapeutics
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alpine and Candel is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Alpine Immune Sciences and Candel Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candel Therapeutics and Alpine Immune 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 Alpine Immune Sciences are associated (or correlated) with Candel Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Candel Therapeutics has no effect on the direction of Alpine Immune i.e., Alpine Immune and Candel Therapeutics go up and down completely randomly.
Pair Corralation between Alpine Immune and Candel Therapeutics
If you would invest 174.00 in Candel Therapeutics on August 25, 2024 and sell it today you would earn a total of 330.00 from holding Candel Therapeutics or generate 189.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
Alpine Immune Sciences vs. Candel Therapeutics
Performance |
| Timeline |
| Alpine Immune Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Candel Therapeutics |
Alpine Immune and Candel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpine Immune and Candel Therapeutics
The main advantage of trading using opposite Alpine Immune and Candel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpine Immune position performs unexpectedly, Candel 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 Candel Therapeutics will offset losses from the drop in Candel Therapeutics' long position.| Alpine Immune vs. Terns Pharmaceuticals | Alpine Immune vs. Day One Biopharmaceuticals | Alpine Immune vs. Acumen Pharmaceuticals | Alpine Immune vs. Amylyx Pharmaceuticals |
| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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