Correlation Between Candel Therapeutics and Greenwich Lifesciences
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Greenwich Lifesciences 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 Greenwich Lifesciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Greenwich Lifesciences, you can compare the effects of market volatilities on Candel Therapeutics and Greenwich Lifesciences 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 Greenwich Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Greenwich Lifesciences.
Diversification Opportunities for Candel Therapeutics and Greenwich Lifesciences
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Candel and Greenwich is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Greenwich Lifesciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenwich Lifesciences 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 Greenwich Lifesciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenwich Lifesciences has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Greenwich Lifesciences go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Greenwich Lifesciences
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 3.15 times more return on investment than Greenwich Lifesciences. However, Candel Therapeutics is 3.15 times more volatile than Greenwich Lifesciences. It trades about 0.06 of its potential returns per unit of risk. Greenwich Lifesciences is currently generating about -0.02 per unit of risk. If you would invest 657.00 in Candel Therapeutics on September 12, 2024 and sell it today you would earn a total of 118.00 from holding Candel Therapeutics or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. Greenwich Lifesciences
Performance |
| Timeline |
| Candel Therapeutics |
| Greenwich Lifesciences |
Candel Therapeutics and Greenwich Lifesciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Greenwich Lifesciences
The main advantage of trading using opposite Candel Therapeutics and Greenwich Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Greenwich Lifesciences 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 Greenwich Lifesciences will offset losses from the drop in Greenwich Lifesciences' long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Greenwich Lifesciences vs. Reviva Pharmaceuticals Holdings | Greenwich Lifesciences vs. Eyenovia | Greenwich Lifesciences vs. Immutep Ltd ADR | Greenwich Lifesciences vs. Anavex Life Sciences |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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