Correlation Between Candel Therapeutics and Alpine Immune
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Alpine Immune 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 Candel Therapeutics and Alpine Immune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Alpine Immune Sciences, you can compare the effects of market volatilities on Candel Therapeutics and Alpine Immune 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 Candel Therapeutics with a short position of Alpine Immune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Alpine Immune.
Diversification Opportunities for Candel Therapeutics and Alpine Immune
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Candel and Alpine is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Alpine Immune Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Immune Sciences and Candel Therapeutics 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 Candel Therapeutics are associated (or correlated) with Alpine Immune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Immune Sciences has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Alpine Immune go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Alpine Immune
If you would invest 132.00 in Candel Therapeutics on August 29, 2024 and sell it today you would earn a total of 330.00 from holding Candel Therapeutics or generate 250.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.48% |
| Values | Daily Returns |
Candel Therapeutics vs. Alpine Immune Sciences
Performance |
| Timeline |
| Candel Therapeutics |
| Alpine Immune Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Candel Therapeutics and Alpine Immune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Alpine Immune
The main advantage of trading using opposite Candel Therapeutics and Alpine Immune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Alpine Immune 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 Alpine Immune will offset losses from the drop in Alpine Immune's long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Alpine Immune vs. Terns Pharmaceuticals | Alpine Immune vs. Day One Biopharmaceuticals | Alpine Immune vs. Acumen Pharmaceuticals | Alpine Immune vs. Amylyx Pharmaceuticals |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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