Correlation Between Candel Therapeutics and 89bio
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and 89bio 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 89bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and 89bio Inc, you can compare the effects of market volatilities on Candel Therapeutics and 89bio 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 89bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and 89bio.
Diversification Opportunities for Candel Therapeutics and 89bio
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Candel and 89bio is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and 89bio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 89bio 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 89bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 89bio Inc has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and 89bio go up and down completely randomly.
Pair Corralation between Candel Therapeutics and 89bio
Given the investment horizon of 90 days Candel Therapeutics is expected to under-perform the 89bio. In addition to that, Candel Therapeutics is 1.33 times more volatile than 89bio Inc. It trades about -0.07 of its total potential returns per unit of risk. 89bio Inc is currently generating about -0.04 per unit of volatility. If you would invest 929.00 in 89bio Inc on September 5, 2024 and sell it today you would lose (56.00) from holding 89bio Inc or give up 6.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. 89bio Inc
Performance |
| Timeline |
| Candel Therapeutics |
| 89bio Inc |
Candel Therapeutics and 89bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and 89bio
The main advantage of trading using opposite Candel Therapeutics and 89bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, 89bio 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 89bio will offset losses from the drop in 89bio's long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| 89bio vs. Candel Therapeutics | 89bio vs. Cingulate Warrants | 89bio vs. Unicycive Therapeutics | 89bio 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |