Correlation Between Candel Therapeutics and Evogene
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Evogene 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 Evogene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Evogene, you can compare the effects of market volatilities on Candel Therapeutics and Evogene 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 Evogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Evogene.
Diversification Opportunities for Candel Therapeutics and Evogene
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Candel and Evogene is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Evogene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evogene 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 Evogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evogene has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Evogene go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Evogene
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 2.79 times more return on investment than Evogene. However, Candel Therapeutics is 2.79 times more volatile than Evogene. It trades about 0.05 of its potential returns per unit of risk. Evogene is currently generating about -0.03 per unit of risk. If you would invest 209.00 in Candel Therapeutics on August 30, 2024 and sell it today you would earn a total of 286.00 from holding Candel Therapeutics or generate 136.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Candel Therapeutics vs. Evogene
Performance |
| Timeline |
| Candel Therapeutics |
| Evogene |
Candel Therapeutics and Evogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Evogene
The main advantage of trading using opposite Candel Therapeutics and Evogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Evogene 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 Evogene will offset losses from the drop in Evogene's long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Evogene vs. Arcus Biosciences | Evogene vs. Fate Therapeutics | Evogene vs. Pluri Inc | Evogene vs. Lexaria Bioscience Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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