Correlation Between Candel Therapeutics and Armata Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Armata Pharmaceuticals 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 Armata Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Armata Pharmaceuticals, you can compare the effects of market volatilities on Candel Therapeutics and Armata Pharmaceuticals 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 Armata Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Armata Pharmaceuticals.
Diversification Opportunities for Candel Therapeutics and Armata Pharmaceuticals
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Candel and Armata is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Armata Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armata Pharmaceuticals 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 Armata Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armata Pharmaceuticals has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Armata Pharmaceuticals go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Armata Pharmaceuticals
Given the investment horizon of 90 days Candel Therapeutics is expected to under-perform the Armata Pharmaceuticals. In addition to that, Candel Therapeutics is 1.66 times more volatile than Armata Pharmaceuticals. It trades about -0.09 of its total potential returns per unit of risk. Armata Pharmaceuticals is currently generating about -0.01 per unit of volatility. If you would invest 207.00 in Armata Pharmaceuticals on November 9, 2024 and sell it today you would lose (3.00) from holding Armata Pharmaceuticals or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Candel Therapeutics vs. Armata Pharmaceuticals
Performance |
| Timeline |
| Candel Therapeutics |
| Armata Pharmaceuticals |
Candel Therapeutics and Armata Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Armata Pharmaceuticals
The main advantage of trading using opposite Candel Therapeutics and Armata Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Armata Pharmaceuticals 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 Armata Pharmaceuticals will offset losses from the drop in Armata Pharmaceuticals' long position.| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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