Correlation Between Candel Therapeutics and Equillium
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Equillium 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 Equillium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Equillium, you can compare the effects of market volatilities on Candel Therapeutics and Equillium 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 Equillium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Equillium.
Diversification Opportunities for Candel Therapeutics and Equillium
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Candel and Equillium is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Equillium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equillium 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 Equillium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equillium has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Equillium go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Equillium
Given the investment horizon of 90 days Candel Therapeutics is expected to under-perform the Equillium. In addition to that, Candel Therapeutics is 1.23 times more volatile than Equillium. It trades about -0.06 of its total potential returns per unit of risk. Equillium is currently generating about -0.01 per unit of volatility. If you would invest 75.00 in Equillium on September 4, 2024 and sell it today you would lose (3.00) from holding Equillium or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. Equillium
Performance |
| Timeline |
| Candel Therapeutics |
| Equillium |
Candel Therapeutics and Equillium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Equillium
The main advantage of trading using opposite Candel Therapeutics and Equillium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Equillium 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 Equillium will offset losses from the drop in Equillium's long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Equillium vs. Candel Therapeutics | Equillium vs. Cingulate Warrants | Equillium vs. Unicycive Therapeutics | Equillium 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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