Correlation Between Candel Therapeutics and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Dow Jones Industrial, you can compare the effects of market volatilities on Candel Therapeutics and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Dow Jones.
Diversification Opportunities for Candel Therapeutics and Dow Jones
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Candel and Dow is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Dow Jones go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Dow Jones
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 12.98 times more return on investment than Dow Jones. However, Candel Therapeutics is 12.98 times more volatile than Dow Jones Industrial. It trades about 0.07 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of risk. If you would invest 509.00 in Candel Therapeutics on November 3, 2024 and sell it today you would earn a total of 200.50 from holding Candel Therapeutics or generate 39.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Candel Therapeutics vs. Dow Jones Industrial
Performance |
| Timeline |
Candel Therapeutics and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Candel Therapeutics
Pair trading matchups for Candel Therapeutics
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Candel Therapeutics and Dow Jones
The main advantage of trading using opposite Candel Therapeutics and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Dow Jones vs. Cincinnati Financial | Dow Jones vs. Kellanova | Dow Jones vs. Acme United | Dow Jones vs. Procter Gamble |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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