Correlation Between Candel Therapeutics and Erasca
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Erasca 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 Erasca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Erasca Inc, you can compare the effects of market volatilities on Candel Therapeutics and Erasca 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 Erasca. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Erasca.
Diversification Opportunities for Candel Therapeutics and Erasca
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Candel and Erasca is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Erasca Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erasca Inc 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 Erasca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erasca Inc has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Erasca go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Erasca
Given the investment horizon of 90 days Candel Therapeutics is expected to under-perform the Erasca. In addition to that, Candel Therapeutics is 1.42 times more volatile than Erasca Inc. It trades about -0.07 of its total potential returns per unit of risk. Erasca Inc is currently generating about 0.09 per unit of volatility. If you would invest 287.00 in Erasca Inc on September 5, 2024 and sell it today you would earn a total of 20.00 from holding Erasca Inc or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. Erasca Inc
Performance |
| Timeline |
| Candel Therapeutics |
| Erasca Inc |
Candel Therapeutics and Erasca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Erasca
The main advantage of trading using opposite Candel Therapeutics and Erasca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Erasca 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 Erasca will offset losses from the drop in Erasca's long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Erasca vs. Candel Therapeutics | Erasca vs. Cingulate Warrants | Erasca vs. Unicycive Therapeutics | Erasca 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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