Correlation Between Candel Therapeutics and Dyne Therapeutics
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Dyne Therapeutics 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 Dyne Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Dyne Therapeutics, you can compare the effects of market volatilities on Candel Therapeutics and Dyne Therapeutics 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 Dyne Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Dyne Therapeutics.
Diversification Opportunities for Candel Therapeutics and Dyne Therapeutics
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Candel and Dyne is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Dyne Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dyne Therapeutics 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 Dyne Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dyne Therapeutics has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Dyne Therapeutics go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Dyne Therapeutics
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 2.41 times more return on investment than Dyne Therapeutics. However, Candel Therapeutics is 2.41 times more volatile than Dyne Therapeutics. It trades about 0.06 of its potential returns per unit of risk. Dyne Therapeutics is currently generating about -0.05 per unit of risk. If you would invest 657.00 in Candel Therapeutics on September 12, 2024 and sell it today you would earn a total of 118.00 from holding Candel Therapeutics or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. Dyne Therapeutics
Performance |
| Timeline |
| Candel Therapeutics |
| Dyne Therapeutics |
Candel Therapeutics and Dyne Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Dyne Therapeutics
The main advantage of trading using opposite Candel Therapeutics and Dyne Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Dyne Therapeutics 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 Dyne Therapeutics will offset losses from the drop in Dyne Therapeutics' long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Dyne Therapeutics vs. Stoke Therapeutics | Dyne Therapeutics vs. Pliant Therapeutics | Dyne Therapeutics vs. Cytokinetics | Dyne Therapeutics vs. Revolution Medicines |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |