Correlation Between Candel Therapeutics and Enanta Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Enanta 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 Enanta 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 Enanta Pharmaceuticals, you can compare the effects of market volatilities on Candel Therapeutics and Enanta 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 Enanta Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Enanta Pharmaceuticals.
Diversification Opportunities for Candel Therapeutics and Enanta Pharmaceuticals
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Candel and Enanta is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Enanta Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enanta 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 Enanta Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enanta Pharmaceuticals has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Enanta Pharmaceuticals go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Enanta Pharmaceuticals
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 2.59 times more return on investment than Enanta Pharmaceuticals. However, Candel Therapeutics is 2.59 times more volatile than Enanta Pharmaceuticals. It trades about -0.07 of its potential returns per unit of risk. Enanta Pharmaceuticals is currently generating about -0.42 per unit of risk. If you would invest 519.00 in Candel Therapeutics on September 5, 2024 and sell it today you would lose (68.00) from holding Candel Therapeutics or give up 13.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. Enanta Pharmaceuticals
Performance |
| Timeline |
| Candel Therapeutics |
| Enanta Pharmaceuticals |
Candel Therapeutics and Enanta Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Enanta Pharmaceuticals
The main advantage of trading using opposite Candel Therapeutics and Enanta Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Enanta 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 Enanta Pharmaceuticals will offset losses from the drop in Enanta Pharmaceuticals' long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Enanta Pharmaceuticals vs. Candel Therapeutics | Enanta Pharmaceuticals vs. Cingulate Warrants | Enanta Pharmaceuticals vs. Unicycive Therapeutics | Enanta Pharmaceuticals 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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