Correlation Between Candel Therapeutics and Dynavax Technologies
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Dynavax Technologies 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 Dynavax Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Dynavax Technologies, you can compare the effects of market volatilities on Candel Therapeutics and Dynavax Technologies 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 Dynavax Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Dynavax Technologies.
Diversification Opportunities for Candel Therapeutics and Dynavax Technologies
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Candel and Dynavax is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Dynavax Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynavax Technologies 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 Dynavax Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynavax Technologies has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Dynavax Technologies go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Dynavax Technologies
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 6.95 times more return on investment than Dynavax Technologies. However, Candel Therapeutics is 6.95 times more volatile than Dynavax Technologies. It trades about 0.05 of its potential returns per unit of risk. Dynavax Technologies is currently generating about 0.02 per unit of risk. If you would invest 176.00 in Candel Therapeutics on September 4, 2024 and sell it today you would earn a total of 275.00 from holding Candel Therapeutics or generate 156.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. Dynavax Technologies
Performance |
| Timeline |
| Candel Therapeutics |
| Dynavax Technologies |
Candel Therapeutics and Dynavax Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Dynavax Technologies
The main advantage of trading using opposite Candel Therapeutics and Dynavax Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Dynavax Technologies 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 Dynavax Technologies will offset losses from the drop in Dynavax Technologies' long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Dynavax Technologies vs. Candel Therapeutics | Dynavax Technologies vs. Cingulate Warrants | Dynavax Technologies vs. Unicycive Therapeutics | Dynavax Technologies vs. Cardio Diagnostics Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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