Correlation Between Candel Therapeutics and Genfit
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Genfit 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 Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Genfit, you can compare the effects of market volatilities on Candel Therapeutics and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Genfit.
Diversification Opportunities for Candel Therapeutics and Genfit
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Candel and Genfit is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Genfit go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Genfit
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 2.25 times more return on investment than Genfit. However, Candel Therapeutics is 2.25 times more volatile than Genfit. It trades about 0.03 of its potential returns per unit of risk. Genfit is currently generating about -0.41 per unit of risk. If you would invest 465.00 in Candel Therapeutics on September 12, 2024 and sell it today you would lose (4.00) from holding Candel Therapeutics or give up 0.86% 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. Genfit
Performance |
| Timeline |
| Candel Therapeutics |
| Genfit |
Candel Therapeutics and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Genfit
The main advantage of trading using opposite Candel Therapeutics and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit's long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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