Correlation Between Candel Therapeutics and Cardio Diagnostics
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Cardio Diagnostics 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 Cardio Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Cardio Diagnostics Holdings, you can compare the effects of market volatilities on Candel Therapeutics and Cardio Diagnostics 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 Cardio Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Cardio Diagnostics.
Diversification Opportunities for Candel Therapeutics and Cardio Diagnostics
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Candel and Cardio is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Cardio Diagnostics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardio Diagnostics 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 Cardio Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardio Diagnostics has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Cardio Diagnostics go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Cardio Diagnostics
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 0.62 times more return on investment than Cardio Diagnostics. However, Candel Therapeutics is 1.61 times less risky than Cardio Diagnostics. It trades about -0.07 of its potential returns per unit of risk. Cardio Diagnostics Holdings is currently generating about -0.05 per unit of risk. If you would invest 837.00 in Candel Therapeutics on September 1, 2024 and sell it today you would lose (366.00) from holding Candel Therapeutics or give up 43.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. Cardio Diagnostics Holdings
Performance |
| Timeline |
| Candel Therapeutics |
| Cardio Diagnostics |
Candel Therapeutics and Cardio Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Cardio Diagnostics
The main advantage of trading using opposite Candel Therapeutics and Cardio Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Cardio Diagnostics 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 Cardio Diagnostics will offset losses from the drop in Cardio Diagnostics' long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Cardio Diagnostics vs. Immix Biopharma | Cardio Diagnostics vs. Cns Pharmaceuticals | Cardio Diagnostics vs. Sonnet Biotherapeutics Holdings | Cardio Diagnostics vs. Zura Bio Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |