Correlation Between Candel Therapeutics and Prologis
Can any of the company-specific risk be diversified away by investing in both Candel Therapeutics and Prologis 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 Prologis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Candel Therapeutics and Prologis, you can compare the effects of market volatilities on Candel Therapeutics and Prologis 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 Prologis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Candel Therapeutics and Prologis.
Diversification Opportunities for Candel Therapeutics and Prologis
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Candel and Prologis is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Candel Therapeutics and Prologis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prologis 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 Prologis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prologis has no effect on the direction of Candel Therapeutics i.e., Candel Therapeutics and Prologis go up and down completely randomly.
Pair Corralation between Candel Therapeutics and Prologis
Given the investment horizon of 90 days Candel Therapeutics is expected to generate 3.93 times more return on investment than Prologis. However, Candel Therapeutics is 3.93 times more volatile than Prologis. It trades about 0.02 of its potential returns per unit of risk. Prologis is currently generating about 0.03 per unit of risk. If you would invest 959.00 in Candel Therapeutics on November 3, 2024 and sell it today you would lose (252.00) from holding Candel Therapeutics or give up 26.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.31% |
| Values | Daily Returns |
Candel Therapeutics vs. Prologis
Performance |
| Timeline |
| Candel Therapeutics |
| Prologis |
Candel Therapeutics and Prologis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Candel Therapeutics and Prologis
The main advantage of trading using opposite Candel Therapeutics and Prologis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Candel Therapeutics position performs unexpectedly, Prologis 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 Prologis will offset losses from the drop in Prologis' long position.| Candel Therapeutics vs. Aerovate Therapeutics | Candel Therapeutics vs. Adagene | Candel Therapeutics vs. Acrivon Therapeutics, Common | Candel Therapeutics vs. Rezolute |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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