Correlation Between Candel Therapeutics and OncoCyte Corp
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and OncoCyte Corp 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 OncoCyte Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and OncoCyte Corp, you can compare the effects of market volatilities on Candel Therapeutics and OncoCyte Corp 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 OncoCyte Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and OncoCyte Corp.
Diversification Opportunities for Candel Therapeutics and OncoCyte Corp
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Candel and OncoCyte is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and OncoCyte Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OncoCyte Corp 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 OncoCyte Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OncoCyte Corp has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and OncoCyte Corp go up and down completely randomly.
Pair Corralation between Candel Therapeutics and OncoCyte Corp
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 2.05 times more return on investment than OncoCyte Corp. However, Candel Therapeutics is 2.05 times more volatile than OncoCyte Corp. It trades about -0.06 of its potential returns per unit of risk. OncoCyte Corp is currently generating about -0.27 per unit of risk. If you would invest 519.00 in Candel Therapeutics on September 4, 2024 and sell it today you would lose (62.00) from holding Candel Therapeutics or give up 11.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Candel Therapeutics vs. OncoCyte Corp
Performance |
| Timeline |
| Candel Therapeutics |
| OncoCyte Corp |
Candel Therapeutics and OncoCyte Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and OncoCyte Corp
The main advantage of trading using opposite Candel Therapeutics and OncoCyte Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, OncoCyte Corp 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 OncoCyte Corp will offset losses from the drop in OncoCyte Corp's long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
| OncoCyte Corp vs. Candel Therapeutics | OncoCyte Corp vs. Cingulate Warrants | OncoCyte Corp vs. Unicycive Therapeutics | OncoCyte Corp 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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