Correlation Between Candel Therapeutics and Kezar Life
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Kezar Life 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 Kezar Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Kezar Life Sciences, you can compare the effects of market volatilities on Candel Therapeutics and Kezar Life 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 Kezar Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Kezar Life.
Diversification Opportunities for Candel Therapeutics and Kezar Life
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Candel and Kezar is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Kezar Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kezar Life Sciences 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 Kezar Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kezar Life Sciences has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Kezar Life go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Kezar Life
Given the investment horizon of 90 days Candel Therapeutics is expected to under-perform the Kezar Life. In addition to that, Candel Therapeutics is 4.29 times more volatile than Kezar Life Sciences. It trades about -0.07 of its total potential returns per unit of risk. Kezar Life Sciences is currently generating about 0.0 per unit of volatility. If you would invest 709.00 in Kezar Life Sciences on September 5, 2024 and sell it today you would lose (2.00) from holding Kezar Life Sciences or give up 0.28% 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. Kezar Life Sciences
Performance |
| Timeline |
| Candel Therapeutics |
| Kezar Life Sciences |
Candel Therapeutics and Kezar Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Kezar Life
The main advantage of trading using opposite Candel Therapeutics and Kezar Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Kezar Life 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 Kezar Life will offset losses from the drop in Kezar Life's long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| Kezar Life vs. Candel Therapeutics | Kezar Life vs. Cingulate Warrants | Kezar Life vs. Unicycive Therapeutics | Kezar Life 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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